Free Budgeting Tool with Business Budget

Posted on July 8, 2010 by Mark

I‘ve created a new Excel zero-based budgeting spreadsheet that’s very similar to the original spreadsheet found here that’s been very popular. The main difference is that it now sports integration with a simple business budget. This allows you to get a more complete picture of your finances from month to month while keeping your personal and business budgets separate.

The business portion of the budget is not a zero-based budget but a more conventional one with the ability to indentify and predict multiple income types. To make things easier for you I recorded a screencast that takes you through the basics of how to use it.

It is not a fancy spreadsheet by any means. It is a simple and straightforward way to keep track of what you hope to achieve. I have found that despite all the fancy budgeting solutions available today I keep coming back to my tried and true Excel spreadsheets.

Check out the YouTube overview below or view it on YouTube.

Download the Zero-Based budgeting with Business Budget spreadsheet here

Economics for dummies – Planet Money

Posted on May 14, 2009 by Mark

I want to understand the world economy. I want to understand the United States economy. I think it’s really important to understand why we’re in the global economic crisis we’re in, how it affects the U.S., and our role in the debacle. The problem is that trying to learn what I want to know from the typical resources is akin to eating sawdust or yanking my teeth out very slowly and with a rusted pair of pliers. Ouch!

This is where NPR’s Planet Money podcast comes in.

First off, let me say that I’m not a raving fan of NPR. I mean, I appreciate the effort they put into their news and weekend programming but idealogically I differ in some key areas. I’m only telling you this so you don’t think I’m some sort of shill for NPR. But this program, Planet Money, is excellent for us non-uber-economist types.

With Adam Davidson at the helm the Planet Money team tells the “story” of our economies in an engaging, entertaining and easy to understand way. They use clever auditory props that simplify convoluted topics like Credit Default Swaps and Credit Default Obligations, how the central bankers spend the world’s savings, and what the current banking crisis means to the little guys like you and me. Before long you’ll have an amazingly informed view of how and why we’re in our current situation and what the result of our government’s economic machinations may produce.

So don’t walk, don’t mosey, RUN to Planet Money’s website and/or podcast page in your itunes application on your computer. Then come back here and tell me what you think.

Planet Money Podcast

You can also listen on page at the Planet Money website

10 money habits – the nasty ones

Posted on March 17, 2007 by Mark

Here’s an article worth mentioning off Bankrate via MSN. (Confused)
Anyways, it contains some good “not to do’s” regarding your money. In a nutshell you shouldn’t do the following…

Spending without a budget.
Carrying a balance on credit cards.
Ignoring interest rates.
Not investigating disability insurance.
Failing to see how little purchases add up.
Not matching employer’s contribution to retirement.
Waiting until the last minute to fund IRA.
Paying everyone else, saving “what’s left.”
Not managing your investments.
Getting emotional about your investments.

The article describes each no-no in depth so go check it out.

Full Article at MoneyCentral

Subprime crash – What’s next?

Posted on March 16, 2007 by Mark

Many of you have already heard the news, Subprime loans are going to be the death of many a lender. Many subprime borrowers are beginning to default on their loans and there too many defaults for the market to absorb.
Other reasons are rising interest rates and declining home prices. This makes it difficult for those with ARM’s that need to refinance to do so.
Here’s a short article from MSN that summarizes it all pretty well…

Subprime lenders, or lenders to people with poor credit ratings, were slammed Monday, with the top five each losing more than 25 percent. Recently, major financial institutions such as HSBC Holdings PLC have been taking writedowns on mortgage loans as a growing number of subprime borrowers are delinquent or in default…. full article

The truth about real estate investing

Posted on November 15, 2006 by Mark

There is a whole lot of “noise” about real estate investing. Will it make you rich? Will it make you bankrupt? How about, “Will it help you just barely get by?” Believe it or not, it will do all these things. You can take my word for it, I’m a full-time real estate investor. Yes, that’s what I do for a living aside from make periodic posts in this blog and invest some time in some other web ventures. And I’ve made a fair amount of money doing it.

Quickly, let me break down what I’m saying:

Will it make me rich?
It can. If you make the right decisions. (which I will outline below) This is the most promoted aspect of a life of real estate investing. I don’t, however, think this is the reality for most people who get into real estate. We’ve all heard stories of the family member or friend who purchased a home and sold it six months later for significantly more money than they paid for it. We’ve seen Donald Trump’s – ahem, gaudy – penthouse and the bevy of buildings named after him. We believe the mythos of the “rich as king Midas” real estate investor who wipes his rear with the hoards of cash he generates from every flick-of-the-wrist deal he does. This is all part of the average person’s understanding of what real estate means to us. But don’t get me wrong! I’ve never seen so many people get “rich” so quick as they do in real estate. But here’s the rub: It’s just not (and I mean this) as easy at it might seem. It is a real business that needs to be run like a real business! Most people will become real estate agents to get into the game. Did you know that in one of the hottest real estate markets in the history of the universe (Phoenix, AZ) over the last five years, that the average agent’s commission actually went down? Yes, it’s true. A plaque on the wall does not a rich person make. (The average commission in 2005 for an agent with two years of experience was approximately $13,000!)

Will it make me bankrupt?
Well, maybe. But don’t focus too much on obvious downside of being entrepreneurial. Here’s a typical bankruptcy scenario: Joe goes to a real estate seminar. Joe learns that rental properties make people rich. Joe buys 5 properties at market value assuming they are going to appreciate in value. (He’s even willing to lose $50 per month per home) Joe’s interest only loans adjust up or one of his properties needs a new roof but he’s completely leveraged out. Joe goes bankrupt.
There are, of course, numerous ways to lose your shirt in real estate but that’s the most common.

I’m going to skip the “will it help me just barely get by” to outline my secrets (wink, wink) to real estate success.
They are very simple:

PAY NO MORE THAN 65% OF TODAYS REALISTIC VALUE FOR THE PROPERTY
This means that if a property is worth $100,000 to everyone else you’re only going to pay $65,000
Sounds impossible doesn’t it? People usually give me a blank look at this point.

ESTABLISH DEMAND EVEN IF YOU GET THAT KILLER PRICE
It doesn’t matter if you can get something for 65% of the marketable value if there’s no one to buy it. Another important parameter is “absorbtion rate”. For example: If 100 homes sell a year in an area and there are 300 on the market in that same area, I’m probably not going to add to the mess by putting another home on the market.

HAVE A SOURCE OF PATIENT FINANCING
If you can find those 65% deals you should have no problem at all lining up financing. But here’s the important point: Try to ensure that they’re not going to come knocking if the deal goes long or the market changes on you. You want a financial partner instead of a pure play lender. (Even if all the contracts and documents suggest that they are just a lender.)

I have made a lot of money following these basic rules. Successful ventures should not be mysteries. They are usually a product of following some basic rules like those outlined above.

I’m going to offer an hour or two of free consulting to the first 3 people that respond to this post with a comment.

Why are you in debt?

Posted on November 7, 2006 by Mark

I know this is a sensitive question, but why are you in debt? More specifically why are you in debt with credit cards and other non-mortgage debt? I know why I was in debt. I wanted more than I could pay for. And once I had more than I could pay for I found myself making payments on my debt with more debt. A death spiral and one that many, many people find themselves in.
Here’s the great things that consumer debt can do for you:
1. Take away options – When you’d rather (fill in the blank), you have to work instead to keep your head above water.
2. Increases stress in your life and the life of your friends and family.
3. Create all sorts of headaches (and heartburn) when you finally can’t make a payment or two and the creditors start calling you.
4. It can cost you everything: your home, your possessions, your marriage, and in very extreme situations, your life.
5. It can keep you from getting a great job. Employers are increasingly checking credit reports before hiring.
6. Steal your retirement – Every dollar in interest paid is potentially one less day of retirement.

The negatives of consumer debt could go on and on. But the question is a very valid one because it tells us about financial motivations. Once again, why are you in debt? And, do you want out?

Mortgage disaster? Need to refinance to save home? Probably…

Posted on September 1, 2006 by Mark

Selena Maranjian wrote an article on Fool.com that is a very clear description of a possible (and likely) impending mortgage crisis. Of course most of us have heard this warning time and time again but it’s worth revisiting if not for the simple fact that the more we understand about the ARM crisis the quicker we may be able to help ourselves, families, and friends recover from bad mortgages.

…and rates are rising, there’s the potential for a lot of heartache. So says a report from ACORN, the national community advocacy group, titled “The Impending Rate Shock.” It pointed out that about 75% of subprime home loans were ARMs. Folks who likely aren’t flush with funds face steeper housing bills in the near future, according to the report: “Rate shock could mean a sharp increase in foreclosures in some of the urban and minority communities that most need to build wealth through homeownership….” Plenty of others are affected, too — roughly 24% of all home loans nationwide are ARMs.

Full article here

Technorati Tags: Budgeting, Debt, Mortgages, Real Estate

Success in the juice business.

Posted on August 3, 2006 by Mark

Part of ultimately being financially successful is both being a good saver and a good worker. Being an independent businessman man myself I’m always fascinated by individuals (and couples) who succeed in their entrepreneurial ventures. Once such example is the couple who started the POM Wonderful group of beverages. It turns out that they also purchased the Franklin Mint back in the 80′s, FUJI Water recently, and a ton of land in California two decades ago. Anyways, their story is interesting and inspiring.

Story
A Juicy Empire

Technorati Tags: Finance, Investing

Best financial advice – What do you want to know?

Posted on July 31, 2006 by Mark

Because we actually care about your financial future – and believe it or not, we do – we’d like to know what financial subjects our reading public are most curious about. Is it budgeting? Saving? Retirement? Mortgages? Something else?
Please take a few moments to sound off on what you want to know the most about. We’ll do our best to provide you with relevant information you can actually use.

Technorati Tags: Budgeting, Credit, Debt, Finance, Finance Tools, Investing, Mortgages, Real Estate, Retirement

How to save money

Posted on July 25, 2006 by Mark

The concept of saving money is very simple: Don’t spend everything you make. Put some away into savings. Actually doing savings is much more difficult. Right? However, there is one common theme I keep hearing no matter which financial guru I happen to see on t.v. or read from. Here it is: PAY YOURSELF 10% OF YOUR INCOME BEFORE YOU PAY ANYONE OR ANYTHING ELSE! (this includes creditors, collection agents, the grocery store, your mp3 habit, Bob’s Steak and Rib Pub, etc, etc, etc.)
Now before you lose patience with me because you either think this is too simple to work, too dumb to work, or simply not worth it let me assure you – It is the best possible way to start on your path to financial prosperity. Having been hugely in debt and low on cash flow a mere 5 years ago I can attest to the effectiveness of using this method. It’s absolutely amazing how quickly a nice little cash cushion can add up and be there for you in case of a real emergency or an opportunity to pay off debt. It can also be rolled over into investments if your debt is paid off. The key is that you have to give it shot, work it consistently, and be rewarded with the gratification of not being a part of the status-quo who don’t have a pot to “you know what” in.

I recommend using an ING Direct account to put your savings in. ING is currently paying over 5% interest (which is about 4.75% more than your bank will likely pay you in your savings account.) and it’s easy to set up and use. One nice feature is that is takes a couple of days to transfer money back and forth. This can keep you from spending your money on impulse but won’t keep you from using it in emergencies.

Begin saving at ING Direct

Technorati Tags: Budgeting, Debt, Finance, Finance Tools, Investing, Retirement

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