Tuesday, August 25, 2009

Time is Money, Budget your Time

Remember, back in school, when the teacher would say, What is the Time Value of Money? Or what is a dollar today, worth tomorrow?

What did they really mean? If you invest one dollar today in the bank, and it's earning annual interest rate of 3%, it will take approximately 24 years before that dollar is actually worth 2 dollars. Seems complicated, huh?

Investment Secret You can Use, Rule of 72:

The 'Rule of 72' is a simplified way to determine how long an investment will take to double, given a fixed annual rate of interest. By dividing 72 by the annual rate of return, investors can get a rough estimate of how many years it will take for the initial investment to duplicate itself. For example, the rule of 72 states that $1 invested at 10% would take 7.2 years ((72/10) = 7.2) to turn into $2. In reality, a 10% investment will take 7.3 years to double ((1.10^7.3 = 2).When dealing with low rates of return, the Rule of 72 is fairly accurate. This chart compares the numbers given by the rule of 72 and the actual number of years it takes an investment to double.

Well if we confused you enough, please read on and let's explain. We have to understand that time is money, and how we budget our time will many times determine how much money we will make. If we look around we have so many things in our way to distract us from actually spending our "Time" or "Money" wisely, from emails, chat, tweeting, to even doing things that you shouldn't be doing (we'll let you decipher what that may mean). The point is, there is only so much time in the day to really take full advantage of the many opportunities life presents us with. The question is do you Budget your Time, we talk so much about having a Budget, is your TIME also put in that budget. Have you ever took the time to calculate how much you make an hour, when you are actually working? Have you ever taken the time to calculate how many hours you spend not working? Try doing the math, and you will have many answers to your life's decisions and where you are, where you want to be, and where you are going at the pace your at.

Start to place a Value on your Time, how much it's worth, attorneys, accountants, advisors, doctors, charge hourly fees. What is your Hour Worth? When you have your answer, this will begin helping you build a more efficient practice, and allow you to start budgeting your time during the day towards the things that make you the most profitable.

Remember, that a Dollar Today won't be worth a Dollar Tomorrow, and What you do Today will determine What your Worth is Tomorrow.

You missed this week's Money & Music Show? We got you, check it "HERE"

Monday, August 17, 2009

MONEY& MUSIC - CHECK OUT THIS WEEK'S SHOW, "PROTECT YOUR MOST IMPORTANT INVESTMENT, YOU!"

HEY PEOPLE,

FIRST MONEY MIKE & COOL V WOULD LIKE TO THANK THOSE WHO JOINED TONIGHT'S CALL, "NUFF RESPECT!"

IF U MISSED THE SHOW U MISSED SOME SERIOUS MEAT & POTATOES! IF YOU MISSED OUT DON'T WORRY JUST CHECK IT OUT "HERE" AND ENJOY SOME GREAT TIPS & IMPORTANT TOPICS. BIG SHOUT TO "NEWMEOO" WHO JOINED US ON TWITTER & CAME ON THE SHOW WITH SOME GREAT QUESTIONS REGARDING THREE PARTY WRITER CONTRACTING. HOW CAN SHE PROTECT HERSELF WHEN GETTING A MAJOR OFFERING FROM A MAJOR LABEL WHILE ALSO PROTECTING ALL PARTIES INVOLVED?

TIP NO#1 : BE SURE TO HAVE ALL PARTIES SIGN A NON-DISCLOSURE AGREEMENT (THEY WILL NOT HESITATE TO DO THIS IF THEIR HONEST ABOUT THEIR BUSINESS!)
TIP #2: NEXT IS MAKE SURE THEY SPEAK IN COMMON TERMS TELL THEM TO EXPLAIN "ALL LEGAL JARGON". IF THEY ARE TALKING OVER YOUR HEAD ASK THEM TO SIMPLIFY THE TERMS. ALSO IF THEY PERSIST RUN LIKE THE WIND BECAUSE HE/SHE IS TALKING OVER YOUR HEAD YOU ARE PROBABLY NOT SAFE!
TIP NO#3 - BE SURE TO GET A LAWYER FOR A LAWYER TO OVERLOOK THE CONTRACT AND IT'S ALWAYS WISE TO GET A 2ND BETTER YET THIRD OPINION FROM DIFFERENT RESOURCES!
TIP #4 - IF THEY ARE IN ANY CONNECTION WITH THAT LABEL IN ANY SHAPE, FORM, OR FASHION RUN LIKE THE WIND, BECAUSE YOU ARE MOS DEF IN DANGER AND A F@CKERY DEAL IS ABOUT TO BE SET UP FOR YOU!

NOW HERE ARE SOME SITES WHERE U CAN INQUIRE PROFESSIONAL ASSISTANCE TO PROTECT YOURSELF!

NOLO - http://www.nolo.com/
MUSE'S MUSE SONGWRITING RESOURCE - http://www.musesmuse.com/
Music Contracts.COM - http://www.musiccontracts.com/
Music Business Solutions -http://www.mbsolutions.com/
Musicians Contract Service - http://www.musicianscontact.com/
Contracts, Trademarks, Copyrights, & MORE Legal info- http://www.legalzoom.com/

REMEMBER PROTECT YOUR MOST IMPORTANT INVESTMENT "YOU".

MANY TIMES THIS IS OVERLOOKED FROM LEGAL CONTRACTS AND DEALS, TO WHICH HUMAN NATURE ALLOWS US TO FORGET OUR MOST IMPORTANT ASSET OUR HEALTH.

THERE ARE SO MANY INSTANCES ONE CAN POINT OUT, WHERE YOU HAVE SEEN SOMEONE'S LIVELY HOOD TAKEN AWAY ABRUPTLY DUE TO AN ACCIDENT OR AN ILLNESS. THINK ABOUT THE LIKES OF MANY SPORTS ATHLETES WHO'S CAREERS END SUDDENLY DUE TO AN INJURY, OR CHRISTOPHER REEVES, MOHAMMAD ALI, MICHAEL J. FOX, TO MOST RECENTLY FANTASIA OR ADAM YAUCH, AND FOR THOSE OF YOU WHO SAY IT'S IN "GOD'S HANDS", THINK OF THE LAST POPE AND HOW MANY YEARS HE WAS SUFFERING FROM PARKINSON'S.

THE BOTTOM LINE IS, IN ENTERTAINMENT, SPORTS, THOSE SELF-EMPLOYED, OR ANY INDIVIDUAL, WE ARE ALL HUMAN AND WE ARE NOT INVINCIBLE TO LIFE'S UNFORTUNATE REALITIES THAT HAPPEN EVERYDAY. SO IT IS IMPORTANT TO ASK YOURSELF, WHAT WOULD YOU DO IN THE EVENT OF A SUDDEN ACCIDENT OR ILLNESS? HOW WOULD YOUR PROFESSION BE EFFECTED & WHERE WILL YOUR INCOME COME FROM?

DID YOU KNOW BETWEEN THE AGES OF 20-67 YRS. OLD, YOU HAVE A 3 IN 4 CHANCE OF SUFFERING A DISABLING CONDITION BEYOND 3 MONTHS. (*social security administration, 2007)

THIS IS WHERE IT IS VERY IMPORTANT TO LOOK AT SHORT/LONG TERM DISABILITY INSURANCE, SPECIALTY INSURANCE, OR CRITICAL ILLNESS INSURANCE, AS PART OF YOUR EXPENSES. THESE INSURANCES WILL HELP REPLACE THE INCOME LOST FROM BEING UNABLE TO PERFORM AT WHAT YOU DO BEST. THERE ARE MANY PLACES TO SEEK OUT THESE TYPE OF INSURANCES FOR YOUR PARTICULAR PROFESSION. HOWEVER, THESE TYPE OF INSURANCES ARE NOT LIKE PURCHASING A CAR, CHAIN, OR CLOTHES. THEY CAN BE COMPLEX AT TIMES, THERE ARE MEDICAL EXAMS MANY TIMES INVOLVED, DOCTOR'S RECORDS REQUIRED, TAX FORMS REQUIRED, AND CLASSIFICATIONS OF THE TYPE OF PROFESSION YOU ARE IN THAT ALL DETERMINE THE TYPE OF INSURANCE NEEDED AND RISK CLASS YOU ARE CONSIDERED TO THE INSURANCE COMPANY, IE. COST/AVAILABILITY. SO DON'T WAIT UNTIL IT'S TOO LATE, TAKE ADVANTAGE OF YOUR AGE & HEALTH TODAY!! BECAUSE THE LONGER YOU WAIT THE MORE CHANCES YOU HAVE OF SUFFERING AN UNFORTUNATE SITUATION THAT WILL MAKE IT IMPOSSIBLE TO OBTAIN, AND OR THE MORE COSTLY IT WILL BE, BASED ON AGE AND HEALTH.

IT IS WISE TO SEEK PROFESSIONAL COUNSEL, AN ADVISER OR INSURANCE AGENT WHO SPECIALIZES IN SHORT/LONG TERM DISABILITY, SPECIALTY INSURANCE, OR CRITICAL ILLNESS INSURANCE DEPENDING ON YOUR PARTICULAR NEEDS.

WHATEVER YOU DO JUST REMEMBER INSURANCE CAN BE VERY COMPLEX TO UNDERSTAND JUST LIKE LEGAL CONTRACTS, ALWAYS DO YOUR HOMEWORK AND BECOME FAMILIAR AND EDUCATED AS MUCH AS YOU CAN, WHILE MAKING SURE THE PROFESSIONAL YOU WORK WITH, WORKS FOR YOU & PROTECTS YOU!!!

NEVER FORGET YOUR HEALTH IS YOUR WEALTH

Tuesday, August 11, 2009

INVEST IN YOURSELF


For all those that missed this week's HOTT!! Show, listen in as Slip N Slide's Recording Artist, Atiba, Cool V & Money Mike drop some heavy, click "HERE"

Check out some of this playa's heat:
"Hey Lady": http://www.zshare.net/audio/64225501ac0781c8/
"Where you are dappa" http://www.zshare.net/audio/64641427d48d053e/
"Eighty6" Remix: http://www.zshare.net/audio/6464495108e8026f/

The rule of thumb in investing is, never invest more than 5% of your portfolio in one particular Company or stock. Unless, that company is Yours.

In today's economy, with Greed running wild from Scandal Ridden Corporate Executives, so-called Investment Advisors & Accountants, Banks and Government Officials, how can anyone have trust in the system anymore?

The only Trust we can have nowadays is in our self and our abilities to succeed using the basic fundamentals in building a solid foundation to success.

Getting back to the basics, we must focus on:
1. Establish a Budget
2. Have a Business Plan
3. Build a Team
4. Establish Credit & Cash Reserves
5. Write down your Goals

Establishing a Budget, is the most important starting point for anyone in life, artist, family, business, anyone looking to succeed beyond tomorrow. For more information on how to create a basic budget, here is an excellent link that you can copy and write down & develop for your needs.

http://www.betterbudgeting.com/budgetformsfree-basicbudgeting.htm

Creating a Business Plan, is most often overlooked. Some of the best business plans started from just a napkin. When we hear the word Business Plan, that brings back memories of those tough courses in college or in high school, and it's time to run for the hills. When in fact, a Business Plan is something that will continue to evolve from that napkin or one pager, into more pages and more specifics about your company as time goes on. Let's simplify Business Plan to what is your Plan? If you have a Plan, this will help keep you on track to your Goals, #5.

For those that want to begin understanding & developing your plan, here's an excellent outline to begin with:

http://www.score.org/downloads/Business%20Plan%20for%20Startup%20Business.doc

Building a Team, is very difficult and takes time. Everyone has their strengths and weaknesses, but can everyone be trusted? That is something that takes time. It's easy to say well I trust my mom or dad, or long time friend, but are they who you should be working with? Are they capable of helping you take your business to the next level? The Team you build should have experience, expertise, willingness to sacrifice, and strength in what they do. Never forget; no one will ever get the job done the way you want it done, unless many times you do it yourself. This will require questioning, researching or doing your homework, and willingness to learn from other's mistakes and successes. Remember, Success Breeds Success, we are guilty by association.

Establishing Credit & Cash Reserves, as they say in the Corporate world, without debt you have no credit. What they really mean is, you are many times only judged by how much credit worthiness you have. In today's economy, getting credit is a very difficult thing to do. Banks use to give credit to anyone and everyone, so for those that were able to use their credit wisely and pay off their accounts in a timely manner and purchased only things they could pay for at the end of the month, they are considered credit worthy. Unfortunately, if we listened to those who advised us "never, never use credit" and never established credit and only used cash, you have no credit worthiness, when looking for a loan, a mortgage, business credit, or funding for your company. It is important to build Cash Reserves before investing in anything; you always want to know during a rainy day or tough times that there is money available to keep you out of DEBT. Though it's important to know, as you build your finances and or your business, that building good credit will in time put you in a position of worthiness to your borrower or investor, or whoever that may be, as you can show them that you have a track record and history of credit worthiness, giving them a reason to invest or borrower with you. This DOES NOT mean go out and rack up as much credit as you can, it simply means using it wisely and establishing a history that will give anyone a good reason to work or do business with you.

Writing down your Goals, realize that without Goals, how do you know where you want to be in life? Why would anything matter in life, if you don't have a Vision or your Sights set on your Goals and where you want to be. It's easy to say I want to be worth a million dollars, but when asked HOW WILL YOU GET THERE? It's easy to say I want to be a Rock Star, but when asked HOW WILL YOU MAKE THIS HAPPEN? It's easy to say I want to be Successful, but what is your definition of Success & HOW WILL YOU ATTAIN THIS? Always dream bigger, but make sure you start by putting those Goals in WRITING, and have a plan on how you will get there. When you can go to work everyday and see your Goals in Writing, it will you focus your energies on achieving the Goals set forth. If you believe it, see it, dream it, you will achieve it.

The above topics have been simplified for this discussion only, and they are topics for future more in depth discussions. Simply put, begin to educate yourself, and begin to start asking the same questions, but most importantly put them in writing. Envision and see your dreams everyday by having them in writing, and begin with a Budget and then a Plan on how today will get you closer to your Goals & Dreams.

If you don't begin Investing in Yourself now, when will someone Invest in YOU?

Tuesday, August 4, 2009

Life is Short, Are you Prepared for a Tragedy?

Life is short, and so often human nature allows us to live the present, while forgetting about the future and the possibilities of sudden unexpected events.

These events can include an illness, accident, death, catastrophic weather, divorce, or even the beauty of life (children). The questions that we must ask ourselves today, what if? What if I were to pass away, how would my family go on? What if I suffered a disabling condition, where would my income come from? What if there was a flood/hurricane/storm, how would we replace what we've built? What if I were to have kids, can we support them and see through college? What if my mom/dad needed care, how would we care for them?

These questions seem so basic, yet 70% of our nation does not insure against these many realities of life. It is wise to seek information and take action sooner then later, but yet it's much easier for us to put off until another day.

Let's take a look at some of the basic solutions to preventing our loved ones from having to struggle, with very little cost.
1. Health Care Proxy, Living Will, Last Will & Testament
2. Life Insurance
3. Long Term Disability Insurance
4. Property & Casualty Insurance
5. Emergency Reserves

We left out health insurance, only due to the fact the cost has gotten so out of control, that this is a topic for another discussion.

The above mentioned, can be taken care of easily with ACTION, not Procrastination. There is no question, that you should never be Insurance Poor, or have to change your lifestyle to pay for insurance. Instead, it should be considered a cost of doing business or carved out as a necessity in life and part of your fixed expenses.

Research online to educate yourself, seek expert counsel to work with you to find the right solutions for your situation, and remember you don't have to break the bank to have these basic plans set up. It's important you work with professionals you feel comfortable and confident with, that you know are looking out in your best interest. They don't have to be part of Large Firm or have the Biggest Clients, they have to work for you, and work with your budget. Remember, it's your business and your future, not theirs, you are in control and it's the job of your advisors to make sure you are clear and understand what you are doing and why. Ask questions, and if you don't come away with the answers you wanted or understand, get a second opinion or third.

Many times we believe these topics are too overwelming to address, when in fact they can be simplified and taken care of in a short period of time. Lack of Planning is very Expensive but Peace Mind is Priceless.