1. Track income and expenses and eliminate expenses that are destructive to your human life value and Soul Purpose. This could include overdraft charges, excessively eating out, monthly charges for memberships that aren’t being utilized, etc.
2. Look to getting some food items by finding deals from local “grocery gurus. ” Warning – do not just buy things because they are on sale. However, if you are going to purchase certain items anyway, then see if you can capitalize on special sales. For those in Utah, the web link for weekly specials is http://www.pinchingyourpennies.com/forums/forumdisplay.php?f=62 (Yes, I do think the name of the website is very ironic considering the conversation).
3. Increase tax exemptions. If you receive a tax return each year, increase exemptions to receive it on a monthly basis rather than yearly. Consult with your tax accountant to know what number is optimal.
4. Temporarily pay minimum payments on credit cards and other loans. If you are making extra principal payments or anything beyond the minimum payments, identify that as a resource. If you do not know what else could be more productive than paying down high interest credit cards, then please put it towards your credit card payments. If you are paying extra on your loans, be willing to question if that is the highest utility of your dollars.
5. Consider stopping contributions to 401(k)’s and IRA’s. This may be an obvious choice considering the volatility of the markets. Most would have been better in money market accounts over the last few years, if not the last 10 years.
6. Sell off any unutilized assets. This may be time to clean your clutter and get rid of things that are only taking space but providing no utility in your life. Look to sell these off or donate to increase tax exemptions.
7. Get rid of duplicate insurances. If you have life insurance tied to certain loans, it will likely be more cost efficient to get an individual term policy. Most life insurance offered through banks or credit unions are expensive for the coverage and benefit the banks more than the client.
8. Consolidate, refinance, or negotiate lower interest rates on loans. Many of us can call our credit card companies and ask if they will lower the current interest rates on credit cards or other loans. Try it! You may be surprised.

Chris Miles,

Wealth Coach

Freedom FastTrack

The first is the characteristics of the accumulation theory vs. that of Utilization. (found on page 43 of Killing Sacred Cows by Garrett B. Gunderson and Stephen Palmer.)

Accumulation Theory:

• Tends toward scarcity in that those who practice it develop the scarcity mindset through years of frugal saving , always in fear of losing their accumulated money.
• Compound Interest is key.
• Wealth is determined by net worth.
• Do-it-yourself, reduce expenses, wait for the future.
• Invest in material things, products and strategies
• Security is derived from accumulated money.
• Investments are unsecured and uncollateralized.
• Higher risk equals higher return
• Retirement
• Diversity

Utilization Theory

• Tends toward abundancein that practitioners learn to constantly be seeking ways to maximize their usefulness to the world, rather than waiting for retirement.
• Velocity is the key.
• Wealth is determined by cash flow.
• Utilize the abilities of other interdependently, increase production, and act in the now.
• Invest in the people behind products and strategies and in clear value propositions.
• Security is derived form human life value, knowledge, experience, and practical application.
• Some investments are secured and collateralized.
• Mitigating risk to near zero equals higher returns.
• Soul Purpose.
• Focus.

Today’s show was awesome and next week’s show promises to be great as well as we talk about productivity vs. minimizing expenses. I would also like to encourage all who are listening to the show to rate the show in Itunes and tell us what you think.

This has inspired me to do a financial series this month for “Half Hour of Power” podcast. I will have Chris Miles from Engenuity Financial as a guest host all month for the 4 part series that we are doing. Chris brings a valuable viewpoint as a former qualified plan provider and financial advisor. Chris has seen both sides of the spectrum. We will breaking down 4 valuable topics:

Part 1- The Financial advisor mindset and How a bank deals with your money that is the complete opposite of what the average American does.

Part 2- Net Worth and Accumulation vs. Velocity of Money- Why your ideal life should start sooner than you think.

Part 3- Production vs. expenses- We are taught to manage expenses but rarely ever to manage production. Which is better?

Part 4- Average rate of return vs actual rate of return- why your qualified plan loses money even when it is supposedly “winning”.

We do the show live every Wednesday at 9:00am MST. You can download on iTunes or listen to past shows on this site as well. I welcome any feedback as well.

In Prosperity,

Brandon