What is your wealth quotient? And, when do you know you have achieved “wealth?”

For the purposes of this article, wealth is defined as an income level derived from passive sources that allows you to live without depending on a job. Passive sources are any income source that throws off a positive cash flow, that you can bank or spend. For example, the cash left over from a rental property after all expenses are paid, is passive income. Likewise, interest from a certificate of deposit, or dividends from stock investments, are examples of passive income. With this definition in mind, the key to creating wealth is to figure out how to create and build passive income sources. To measure my progress in this area, I use a simple formula:

Passive income divided by your total living expenses = wealth quotient

Consider this example: If you had $1,200 per month in passive income from a real estate investment and your cash savings account, and $4,500 in monthly expenses to survive (house payment, household expenses, etc), your wealth quotient equals: Continue Reading »

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I am going to introduce you today to a concept that if you understand and implement, will be the deciding factor of your financial success in your life. Like all great knowledge, this one is also dangerously simple, and that’s why most people don’t get it! But before I get to that, let me share with you a great quotation that I read recently:

“…there are people who put their dreams in a little box and say, “Yes, I’ve got dreams, of course, I’ve got dreams.” Then they put the box away and bring it out once in a while to look in it, and yep, they’re still there. These are great dreams, but they never even get out of the box. It takes an uncommon amount of guts to put your dreams on the line, to hold them up and say, “How good or how bad am I?” That’s where courage comes in.” ~ Erma Bombeck Continue Reading »

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Filing for bankruptcy issues an automatic stay from most action against the debtor from things like a foreclosure, lawsuit and even garnishments. The stay was enacted to keep the debtors property protected but the stay is not permanent. If you are a creditor they try to get relief from the stay by going after the debtor they must consult the judge assigned to the case first. There may be a hearing that the creditor must show cause as to why they wish to collect before the discharge of the bankruptcy.

A creditor that is seeking relief from the stay in order to go ahead against the debtor the property of the debtor must be able to proof to the bankruptcy judge during a hearing that there is enough cause for granting the relief or lift of the stay. Cause may be proven by showing that the interest of the creditor is not really protected or by showing the judge that the debtor has no real equity in the property and the property itself is not needed in order for reorganization through Chapters 11 and 13. Continue Reading »

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