Debt Eliminator

What do you know about money? Do you know how money works? Cash Flow Leverage Are both of the above working for you or against you?

Cash Flow Cash flow is easy to understand. Do you have more cash coming in then you do going out? What pipelines do you currently have? What is an asset and a liability? Assets puts money in your pocket Liabilities takes money out Rich Dad Poor Dad – Robert Kiyosaki

Leverage Are you paying to use someone else's money? OR Are you leveraging your money to make more money?

THE DEBT QUIZ Do You Save A Minimum Of 25% Of Your Adjusted Gross Income? Do You Take Cash Advances On Your Credit Card To Pay Daily Expenses? Do You Extend Repayment Schedules On Your Bills? Do You Get Loans To Pay Off Other Loans? Do You Use Credit For Products & Services You Used To Pay For With Cash? Do You Work Overtime Or A Second Job To Stay Ahead Of The Bill Collector? Do You Pay Your Bills Late? IS THE SUBJECT OF MONEY THE MOST FREQUENT CAUSE OF ARGUMENTS WITH YOUR SPOUSE?

STATISTICS The Amount That Americans Owe On Loans For Houses, Cars, Credit Cards Adds Up To Nearly 100% Of Their Annual Income After Taxes – Up From 75% In 1992. The Average Homeowner Stays In Their Home For 7 Years. With An 8% Mortgage, They Will Sell Their Home Still Owing Over 90% On Their Mortgage. IF THEY WERE TO CONTINUE ON THIS TREND, THEY WOULD NEVER PAY OFF A MORTGAGE IN THEIR LIFETIME. According to a USA TODAY Headline Article, The Average Baby Boomer Who Makes $50,000 Today Will Need ONE MILLION DOLLARS To Replace That Income In Retirement. If This Person Had 20 Years Until Retirement, They Would Need To Start Saving $2,400 Per Month IMMEDIATELY. You’ll Spend More On A Credit Card Purchase Than Using Cash. The Typical U.S. Household Carries An Average Credit Card Balance Of $8,400. Up From $3,000 In 1990 – How Many Cards In A Household? 1992 Federal Reserve Study Showed that 43% Of Families Spent More than They Earned.

What is your Exit Strategy? 60% Of Adults In America Have Given No Thought To Retirement Planning. The Average 50 Year Old Has Less Than $2,500 In The Bank. 96% Of All Americans Will Retire Financially Dependent On The Government, Family, Or Charity (US Dept Of Health & Human Services) The Average American Percentage Of Savings Compared To Other Countries Is Extremely Low. Japan 18.1% Germany 14.8% Britain 12.3% Canada 11.3% UNITED STATES OF AMERICA 4.1% EVERYDAY 2,200 AMERICANS LOSE THEIR JOBS.

Are You Saving Enough Money To Meet Your Goals?? Will this be YOU? YOU’RE NOT ALONE! A Survey Revealed That 66% Of Americans Experience Financial Distress. ASK YOURSELF THIS….. “ Do You Think Your Financial Problems Would Be Solved If You Just Made More Money?”

Credit Card Payments: Leverage Working AGAINST You A $2,000 Credit Card Purchase At 19.8% Annual Interest Rate How long Would It Take To Pay Off And How Much Interest Would You Pay If You Paid Only The Minimum Balance Each Month?

31 YEARS AND 2 MONTHS You Would Pay In Interest Alone $8,202.00 GRAND TOTAL $10,202.00

The American Family Head of Household John Age 37 Earns $42,000 Spouse Jill Age 36 Earns $12,000 2 Children Ages 9 & 11 $54,000 Family Concerns: Savings, No Liquidity, College For Kids. “NO LIGHT AT THE END OF THE TUNNEL” Step#1 List all debts with balances and “MINIMUM” monthly payments. When documenting your minimum payments also make a notation at bottom of page of what your typical payment is.

Step #2 Most People When Paying Their Bills Do Not Develop A Strategy To Eliminate Their Debt. They Will Pay A Little Extra Here & There And Never Eliminate Their Debt. 1) You Must Now Prioritize Your Debts 2) Divide The Balance By The Payment 3) Now Rank Your Debts Beginning With The Lowest Number In Column 4 4) Rank Starting With One (1) And Go Up

Step #3 It Is Now Critical That The Family Realize How They Got Into Their Present Situation. They Must Change Their Spending Habits. 1) NO LONGER ACCUMULATE CREDIT 2) LEARN TO LIVE ON A CASH BASIS This is the hardest part but focus on your exit strategy ***CREATE A MONTHLY DEBT ELIMINATOR** GOAL = 5% of GROSS INCOME DO NOT BE CONCERNED WHERE TO GET THE ELIMINATOR! Take your eliminator and “ADD” it to your #1 ranked debt. The family will pay that amount on that bill until it is paid off and pay the minimum on all other debts. This is where the plan comes together – After #1 debt is paid off, you will perform a “ROLL UP”. What you paid on #1 add to #2 until it is paid off and continue up.

Step #4 By Utilizing $250.00 A Month As A Debt Eliminator Let Us Now Look At How Long It Will Take to Gain “FINANCIAL FREEDOM” Divide the balance (Col 3) by the Roll Up Pmt (Col 6) This Will Give You A Number Of Months To Pay Off Total Up The Whole Column Divide By 12 This Will Be The # Of Years To Get Totally Out OF Debt

DEBT ELIMINATORS 1) RETIREMENT CONTRIBUTIONS / SAVINGS 2) INSURANCE – AUTO / HOME 3) YARD SALE 4) DINING OUT (LUNCHES AT WORK) 5) GROCERIES 6) TELEPHONES 7) HEATING – ELECTRICITY 8) MOVIES VS VIDEO RENTALS 9) SUBSCRIPTIONS / COMPUTER SERVICES 10) BARGAINING – “Everything is Negotiable”

#1 FINANCIAL STRATEGY JOIN THE FASTEST GROWING INDUSTRY IN THE WORLD! HOME BASED BUSINESS START & OPERATE A HOME BASED BUSINESS “WITH AN INTENTION FOR A PROFIT.” CONVERT NON-DEDUCTIBLE PERSONAL EXPENSES INTO DEDUCTIBLE BUSINESS EXPENSES.

What are the benefits? Already have a system in place Team of experts that have already done what you want to do Products Tax ELIMINATE YOUR DEBT

How do you find a Home Based Business? Do Searches – www.cashflowpotentials.com Talk to People Read

What should I look for? Trends Baby Boomers, Online shopping, Health and Beauty Product Do they distribute a product or multiple products Team Is it a team environment or are they in it for only them selves? Effort What do I need to do to be successful? Profit What does the average person make Financial Stability Better Business Bureau

Home Based Business Strategies 1) Employee Your Children – Pay Them Up To $4,850 Each - $5,000 in 2005 2) Automobile 3) Communication Expenses – Telephone, Long Distance, Call Waiting, 3-Way, Internet, Pagers, Cell Phones 4) Travel Expenses 5) Employ Your Spouse 6) Create A Self Insured Reimbursement Plan and Deduct 100% of Medical, Dental, Premiums, Deductibles, Co-Pays, Prescriptions, Braces, Contacts, Glasses, Prescription Sun Glasses, Cosmetic Surgery 7) Business Use of % Of Home – Mtg., Rent, Utilities, Improvements, Repairs, Insurance, Taxes, Security System, Lawn Care Plus More. 8) Deduct 50% Of All Entertainment & Meals

Because You Have A “HOME BASED BUSINESS” SEEK THE ADVICE OF A CPA & ADJUST YOUR W-4 The following is the amount of increased take home pay per pay period for our family as a result of changing the head of household and spouse’s W-4 to offset just a few of the deductions they will take in their Home Based Business. John Jill Old W-4 Exemptions 3 1 New W-4 Exemptions 9 6 INCREASED TAKE HOME PAY $108.75 $16.38 PER PAY PERIOD John $217.50 Jill 32.76 TOTAL $250.26 P/Month We Have Just Created Their Debt Eliminator With Tax Savings! NOW – Let’s Add Their $250 Plus Their $135 For A Total Eliminator Of $385 Important: Do not adjust your W-4 unless you intend on operating a home based business with the “Intention Of Actively Pursuing A Profit.” In addition, if you ever decide to quit your home business, be sure to re-adjust your W-4. It is highly recommended to adjust your W-4 every 90 days to reflect the level of expected income of your business. It should also be noted to seek the advice of a CPA to assist in this change.

STAYING WITH YOUR PLAN REVIEW ON A MONTHLY BASIS INVOLVE THE WHOLE FAMILY SHARE THE STRATEGIES WITH OTHERS REWARD YOURSELF / FAMILY UTILIZE AS A MARKETING STRATEGY SEE YOUR EXIT EVERY DAY!!!

KNOWLEDGE I hope you will embrace the information and DECIDE to take ACTION. It will make a difference in your life…. We wish you the BEST DAYS OF YOUR LIFE …..

Debt Eliminator

More Related Content

What's hot (20)

Similar to Debt Eliminator (20)

More from Andrew Van Valer (11)

Recently uploaded (20)

Debt Eliminator