Mobe Matt Lloyd Tips :Millionaire Mindset

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Mobe Matt Lloyd :Why does the rich keep getting richer when everyone else seems to be plummeting into a financial black hole? Is it an inevitable destiny that you just have to accept and learn to live with? Not quite.

The biggest secret as to how rich people continuously grow their wealth lies in their money management skills. Many successful people attribute their wealth to actively and effectively taking control of their finances. They adopt the habit of budgeting and planning for their expenditures and are diligent in keeping to it.

The good news is you can also learn to be in control of your finances, and you can start by avoiding these six common financial mistakes that rich people stay clear of.

1. Not Investing in Yourself

The most profitable investment you can make in life is investing in yourself. Your time and money should be primarily spent on improving your knowledge and skills before you can hope to make a success in other investments.

Successful people never stop learning. They buy books and materials that will help enhance their skills. They attend seminars and seek expert advice to better their expertise. They have a portion of their earnings strictly dedicated to educating and improving themselves. In his book “No Excuses: The Power of Self-Discipline,” Brian Tracy advises investing 3% of your income back in yourself to grow your earning ability.

You can never grow if you don’t learn new things. Your income, mindset and approach towards money will stay the same, and you will keep falling deeper into debt and financial difficulties if you’re not careful and knowledgeable.

2. Buying Cheap

In efforts to save money, most people will buy the cheapest option available. Granted, it saves you some money at that moment, until you have to replace your purchase three months later. Good quality goods don’t usually come cheap, and cheap goods don’t last long.

Think long-term investment when making purchases for everything from a simple pair of shoes to your family car. In the long run, you will save a lot more money buying quality stuff, you will get a good user experience, and you will probably save yourself the time spent on looking for cheaper products.

3. Living outside Your Means

Fake it until you make it. That is probably one of the worst financial advice anyone can ever give. You should never fake having a lot of money. Spending ridiculous amounts of cash on luxurious brands and entertainment sprees, especially if you’re using lots of money you don’t have, will lead you to mountains of credit card debts that might take you years to get out of.

While a lot of people’s expenditures greatly exceeds their earnings, rich people live on less than they earn. This is an essential money management skill that will help you increase your savings every month. Assess your monthly expenses and cut down on those things you can live without. Adjust your budget to, at most, 80% of your income, and stick to spending only that.

4. Wasting Money on Fees and Interest

Buying on credit is costly. There are high fees and interests that come with maintaining a credit card. Some banks charge as high as 20% or more, thus, you end up paying more money than you spent, which is money that could have gone into your savings.

A lot of people also have a habit of paying their bills late or paying only the minimum amount. Late payments may incur extra charges that you don’t need; which wastes your money, and the longer it takes you to pay your bills, the higher interest you’ll have to pay.

5. Staying in a Stagnant Income

Some people get too comfortable with their financial situations. They learn to make do with what they earn and hardly ever make an attempt to improve their income. Price hikes, increasing taxes and other economic situations keep rising no matter how stagnant your income is, which could slowly eat away your purchasing power. This eventually leads to spending on credit and only worsens your financial situation.

Rich people are never satisfied with a stagnant income; they are always thinking of ways to supplement their earnings. They diversify their income through investments and business endeavors, and avail savings accounts with high-interest rates. Furthermore, they improve their skills and expertise so that they can have the leverage to ask for salary increments, or develop their products and services to raise prices.

6. Saving Last

When ordinary individuals see some money in their bank account, most of them immediately think of what they could spend it on. They allocate the money to various expenses they believe they need and only save whatever is left, which is usually very little or, sometimes, nothing at all.

Rich people, on the other hand, study their finances, calculate where their money needs to go, and then put away the savings money before allotting the rest to expenses. They plan budgets based only on the money they have after saving, and they avoid impulsive buying. They never make spontaneous withdrawals from their bank accounts, and if they must cash out, they find ways to earn money to replace it.

None of the points mentioned above have anything to do with the amount of money you already have, but everything to do with your financial control and a positive mindset towards wealth. Put your efforts in taking control of your finances, and you will enjoy a stable and prosperous life.

Mobe Matt Lloyd Tips : Trust Funds

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Mobe Matt Lloyd Tips :While it’s common notion that trusts are only for the affluent, anyone can actually avail its benefits. You can avoid probate, distribute assets to beneficiaries as you wish, reduce taxes and a lot more others. Alternatives might be easier for some, yet knowing if trusts can work well for you is another step for a good financial security.

What is a Trust?

A trust is a document or legal agreement between a Grantor, the person who sets up the trust, and the Trustee, the firm or person(s) responsible for making sure that the trust clauses and instructions are carried out and implemented when the right time comes. Trust companies manage the assets transferred to the trust for the ongoing benefit of a third party, the Beneficiary.

Do Businesses Really Need It?

As mentioned above, every individual and even businesses—big or small—can have a trust fund and setting up a trust has a multitude of advantages. Here are some:

Helps You Manage Financials

For most business owners, their company is their ultimate wealth. They may be new in the marketplace but like most, they have invested every penny they had into that small business they lovingly called their second home. They have traded their corporate tenure and security for what they think would provide their children with a more lucrative future.

Protects Your Personal Assets

It’s not always a happy ending with businesses. Bloomberg reported that 8 out of 10 entrepreneurs crash and burn within their first 18 months of operations. With such statistics and many others showing a very slim chance of success, it would make anyone wonder why anyone ever explores entrepreneurship at all. Not only could they face bankruptcy, but they can face lawsuits. But with a trust in place, they can protect their personal assets from bloodthirsty creditors and collecting agencies.

Keeps Your Heirs Away from Unfavorable Circumstances

Problems arise when, say, you’ve passed away. Trusts are vehicles to carry out a will in a private manner, according to what the grantor wants. The grantors can include clauses that prevent heirs from getting anything unless they satisfy the pre-set conditions in the trust. Some of the typical conditions they have to meet have something to do with age, educational attainment, mental capability and social status.

Provides Potential Tax Savings and Legacy Protection

If you pass away and don’t have children yet, the state can dig in, find the closest relative to run your company and collect enormous taxes to transfer the business. More often than not, that closest relative doesn’t have a clue about running a company, which could destroy your company’s reputation and corporate image.

Which Trust is the Right One for You?

Not all trusts are created equal. Each one is unique and is designed to fulfill a particular need. Like investments, they are tailored and classified according to different parameters. Some of the considerations include duration, creation method, purpose and the beneficiary’s relation to the person who creates the trust.

To know which one suits your business’s needs, you have to know each one. Here’s an overview:

Revocable Trust

Also called the Living Trust, this type of trust can be revoked and allows you to maintain control of your assets placed in the trust. You may change it at any time and continue to manage the assets in your lifetime. Because you’re still alive, assets will not undergo probate hearings. Assets under the Living Trust then becomes Irrevocable when the Grantor dies. When this happens, the assets are no longer in your possession but are not subject to estate taxes. As such, only the beneficiaries can change what happens to assets per the terms predefined in the trust.

Testament Trust

This kind of trust involves assets outlined in a will with conditions to take effect only after the Grantor’s death. The funds are subject to both transfer and probate taxes.

Discretionary Trust

Here, the Trustee has the power to decide as to when and how to distribute the trust income and in some cases, even capital, to the beneficiaries. This trust is set up to put aside assets for future needs or for recipients who are not capable of making wise decisions with their money. Grantors can restrict fund allotment depending on which beneficiary gets paid, how much and how often. Unlike checking or savings accounts, Grantors can set stipulations to trusts.

Dynasty Trust

These trusts are designed to provide peace of mind to Grantors who want to transfer wealth from generation to generation without having to shoulder transfer taxes, including gift and estate taxes. The defining characteristic of this type of trust is its term. This trust can still be in effect twenty-one years after the last beneficiary’s death, and can even last for more than 100 years. It is irrevocable, meaning that once the grantor has transferred the assets to this trust, he no longer has discretion over the assets.

Life Insurance Trust

This type of trust is irrevocable and is always tied up with a life insurance policy, hence the name. It’s commonly used to reduce hefty estate taxes. Although exempted from federal government taxes, life insurance trusts are still subject to estate taxes. This trust is used to take the insurance out of the taxable estate, allowing heirs to have a tax-free income that they can use to pay up estate taxes as part of the succession plan.

Charitable Remainder Trust and Charitable Lead Trust

As part of their altruistic intentions, some business owners want to leave a portion of their wealth to charity, so they set up charitable remainder trusts. They set aside a bulk of their assets to their children and leave the rest to institutions of their choice. The charity will be able to receive the assets on the Grantor’s demise.

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