Money Smart

By Peiying Peng & Liz Zed

Not even CPAs like to balance their own balance sheets (I have asked and they’ve told me). But its importance cannot be overstressed. Your balance sheet itself does not bring in income, but without it, you won’t ever make it to the rank. That goes without saying.

You might have kept a balance sheet for years. But you are reading this article right now, because you probably are not sure if you have done everything correctly. Don’t worry, this can be relatively painless.

Here is the check list for you to utilize for preparing your current balance sheet:

Income

All sources coming in monthly including W2, 1099, grants, passive, proprietorship or corporate.

Expenses

All monthly outflow including food, shelter, clothing, utilities, gas, maintenance, phone, credit cards, insurance

Assets

All appreciating real goods such as property, certain collectibles, precious metals, stocks & bonds, and certain depreciating goods such as expensive recreational ‘toys’

Liabilities

Mortgage balance, credit card balance, accounts payable.

By PeiyingPeng & Liz Zed

Everybody wants to work less and earn more. But how? By joining network marketing could be the answer. Financial gurus such as Robert Kiyosaki, David Bach have all been advocates for network marketing. Both Robert Kiyosaki and Donald Trump have said that if they had to start all over again, they would be starting in network marketing.

Since you are reading this article, assume you have already done your homework on why network marketing is a good business model for people to make money from home. This is a bit deeper than arguing why network marketing works. We are introducing you to get some tools so you can find a good company to give your effort.

Maybe someone have already introduce you to some possible network marketing opportunities already. There are many, many good companies and products for you to pick from. Which one?

Here are some tools to steer you in the right direction.

§ Consumable product.

Something that people will need on a regular basis. I was in one of the network marketing company (a very large one), which sells a lot of household products. I bought some laundry soap last year, and am still using it. That definitely did not create volume. However, a health beverage that one drinks daily will be a good product. Or tablet one needs to take daily.

§ Strong, healthy growth

Do some research on the company you are leaning toward, if they are a new company, find out about their monthly growth. Is the growth a sustainable trend? If it is a more established company, how many years have they been in the business, and has their growth tapered off? Is the usual stereotype about network marketing compounded with a negative perception against that particular company?

§ Compensation plan

Every company says they have the best compensation plan. They are absolutely not the same. Check and ask around. Are you going to be happy with a check of two dollars and fifty cents (I have actually gotten one)? If not, then dig deeper. There are some companies that have much better compensation plans than others. Tip: look for people who run the company that has proven history of being a distributor’s advocate.

§ A Cause that you love

Most of the network marketing companies have some sort of charitable cause that they try to further making you feel good to be part of the business. Does the cause speak to you? Hopefully, it does.

§ A product that you love

I put this last because some argue that “you don’t have to love bagels to open a bagel shop.” I disagree. Being a consumer of the product that you love is imperative for you to talk with prospects with integrity and enthusiasm. You can’t feel good about doing business with someone unless you know you love the product yourself.

The above list should get you started. Network 21 has a good training program for business owners. It is related to Quixstar, the old Amway, which, unfortunately, becomes the proverbial negative stereotype of network marketing. But they have over 6 millions of distributors and a strong business, so I will still recommend their business tools. You can, of course, stick with your company’s recommendation or rely on your upline. The best way to get started is to get started. Good luck and keep on striving toward your goals. Feel free to email me at peng@mymoneydoctors.com for any questions.

By Peiying Peng & Liz Zed

Making Money–How to invest safely in Real Estate that will bring you profits and equity

Many people are sitting on the sideline these days when it comes to real estate investment. Scared. You need not do the same if you know how to make money in this market. The euphoria over the real estate market is over, and the down turn market wind has blown away the shaft of red herring investors. Now is the perfect time for the sophisticated you to get involved, if you have not done so.

If you are cash rich, congratulations. You have your pick. You can drive a bargain in many desirable areas.

If you are not cash rich, but want to invest, congratulations, too. You are a smart one. You might need to do a bit more work than the cash rich counterparts, but the reward is still huge.

Here are your check list for investing in this real estate market.

§ Due diligence

That goes without saying. But I still want to put it here first. Especially for those who belong to any real estate mentoring club, where you feel that most of the deals have been researched. Do your own homework. Call the local property manager to check on the rents. Don’t listen to your agent only.

§ Cash (flow) is the King

Robert Kiyosaki has been drumming this in our ears for years, that positive cash flow is a key element in real estate investment. This is largely ignored in the last few years when anybody seems to be making money in any market. Now the market is coming to a soft landing, pay attention to your wallet. Positive cash flow lets you sleep well at night. People who ignore this rule and only focus on building equity have come to some really tough moments in the last year or so, and the situation might not improve for them for at least another year or so.

§ Hot market is the market you know, not the one your neighbor knows

Do you really want to follow everybody to invest in a market that is overheated? The answer is not so simple. Know your market before you invest. What everybody says has value, but only so much. Listen to the experts, but don’t trust them. Ultimately, you are the one paying the mortgage. Know the real estate cycles, and if the top market has been really hot for 3 or 4 years, it might not be the best time to get in anymore.

§ Know your risk tolerance.

And if you have a family, know your family’s risk tolerance. When unexpected element hits, a different risk tolerance between spouses can cause relationship strife. Talk before you invest.

§ Long term vs. Short term

If your risk tolerance is low, a short term, quick flip might not be your thing. 3/2 family houses in stable areas with low equity play but positive cash flow probably will be your best bet.

Most of all, this could be your best time to invest if you know how. Get into a group to talk about your ideas. Join our online community to ask questions and give your answers, too. And may you make loads of money : )

By Peiying Peng & Liz Zed

Step 5. Forego anything.

Initially keep track daily for one week of all money spent. Continue to track your spending using force of will and focus accounting to the penny, if possible. This exercise will pay off in spades! Over a very short period of time–days and even a couple or three weeks, you will begin to see a pattern of expenses. You will begin to notice small, unnecessary expenses. You will notice that you really could have managed without that purchase. You will begin to compare the purchase itself with the value of one more small addition to your money stash.

Again, over just a brief period of days and weeks there will be many instances where the value of the mounting total will be greater than the brief satisfaction provided by money hastily and perhaps not healthily spent. Soon your stash will begin to look more like the blossoming of a Wealth Account.