Financial Baseline, Part Deux!!!

Financial Baseline, Part Deux!!!

Credit – what you owe, and what you can get your hands on will often determine a lot of very valuable pieces of information for you in coming up with the right idea for your plan to achieve success over the next year in the Millionaires’ Race to 2010.

First, let’s work with the baseline components of what you owe. Now take a deep breath….let it out slowly. Wash, rinse, repeat. Deep breath…. You’ve got the idea.

See just about everyone gets stressed out to one degree or another when you start to talk to them about their bills. I do, I’m sure you do, so as soon as we can take the stress out of the equation we can get down to business and get your debts taken off the list of stresses driving your life.

Some of you will be in debt positions that, quite frankly, would scare Freddy and Jason into permanent retirement. Others will only have more nominal debts, but perhaps have insufficient income to meet those and your basic needs. Others still may have no real debts to worry about, but no credit to speak of either. No matter what your circumstances, we’ll walk you through this part and at least get some clarity on your options and see if there isn’t a good idea on how to get out of the credit trap.

Once more, we can look at specific numbers here if you’d like, or we can go back to that 1-100 scale we were working with where a ‘1’ would indicate that you’ll be bank rolling Trump in his next major project and probably don’t qualify for the Race, and ‘100’ where whole continents fear economic disaster with the sheer mention of your credit/debt load. Notice, it’s good to score low here.

Current Liabilities:
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Credit Card Debt:
Payday Loans:
Short Term Personal Loans (due in 3 months or less):
Utility Bills:
Telecommunications Bills (Cell, land lines, cable, internet, etc.):
Insurance Bills:
Medical Debts:
Current Car Payment:
Child Care:
Rent/Mortgage Payment:
Installment Loans (student/personal/other):
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Where you feel your Current Liabilities rank today:
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These are all the bills that you have facing you with a payment due in the next 3 months. If you have to face it now, that’s a current liability in my books. Notice I didn’t add things like gambling debts. That’s your own dumb fault.

Long Term Liabilities:
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Remaining Mortgage Balance:
Remaining Car Loan Balance:
Remaining Installment Loan Balance:
Anything else that takes longer than 3 months to pay back:
Annual Land Taxes Due:
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Where you feel your Long Term Liabilities rank today:
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If you could knock off any 3 bills permanently without having to replace them, which ones would they be? Why those particular bills? What about those ones specifically brings you stress? And how much money would it realistically take to make sure you basically never had to worry about those bills again? Really? Is that all it would take to solve those stress factors? Really?

So as we go through this project, the Millionaires Race to 2010, you really don’t even need to reach that much just to make your quality of life measurably better. And sure, we’re in this Race to win long term financial security, but in reality what we’re after is the ability to not have to worry so much about the necessities of life.

If we can solve those problems, we can reach our ultimate goal of financial freedom too.

So think about your liabilities not just as problems you face every day, but as measuring points against which you will be working to succeed and fix in such a way as you will never have to worry or face again the rest of your lives. Imagine a life without your biggest three financial stresses – and realize that it can be just a few months away.

I’ll get into the issue of available credit another night this week and how to benefit/maximize that as well, but for now see your liabilities for what they are – the stepping stones to your life without them a year from now or less.

Goodnight, God bless.