Tuesday, November 27, 2007

Cash Flow (Literally)

Another week, another post - this one is just a commentary on something that Karl Fulljames found on another blog on the Internet.

In relation to Cash Flow, the Blog called: The Tao of Making Money illustrates the cash flow patterns that exist for the vast majority.

Although an excellent example - I feel that it doesn't capture every aspect of the rich cash flow archetype - but that's pretty well documented in Kiyosaki's and Anderson's work.

In any case, it's a good start. If only there were a multiple income stream one where they had some of the money flowing into an "Asset" container, which then streamed back into income...

sometimes I wonder if it's a good thing, or a bad thing that I own a tablet PC... Anyway, you get the rudimentary idea. Eventually the goal would be to create multiple passive streams and get rid of the IN stream coming from the regular 9-5 workday to free up more time to dream up even more passive streams. In the end, it truly is just a game.

Thanks to the whole iPoint project, I'm happy to say that this is my current diagram - (with a few more asset/passive lines - but I'm not creative enough to figure out how to draw that many more). Now that I've done even further research and started looking into the real estate side of the market, I'm looking forward to adding even more streams. I can't wait until I'm allowed to launch the whole Infiniti Point Investment Club.


Monday, November 26, 2007

Jobs cause the most stress

Here's a damn good reason for me creating iPoint:

Stress = BAD

Job = Stress


Job = BAD

Take a look at THIS article from the Vancouver Sun. Although I should really write up the whole story from the beginning, Infiniti Point to me was a method to help my friends and family members (at least the ones that were ready) learn and join me in the quest for passive income and financial freedom. Even though I feel that I've already met and surpassed my original personal goals, it's no fun sitting on the beach by myself...

I'll have to add that my stress levels - even at a job that I enjoyed at one point were still up there. Being stuck - not having the choice to WANT to work and not HAVE to work is still a stressing point unto itself.

Having said that, please join me in my quest for chasing perfection and true freedom. Check out http://www.ipoint.ca/ and join the forums, help us to find opportunities, and join the ones that we're already participating in and escape the 9-5 prison that gives Canadians so much stress as of late. My next personal goal will be to help 15 people reach either 1M in net worth, or 500k/year in passive income by 2010. Afterwards, the goal will be to help 100 people reach the same goals by 2012 and lastly 1000 people by 2014.

Tuesday, November 20, 2007

So you lost your wallet (or purse)...

Now what? Your keys, credit cards, points cards, coupons, stamp cards, chewing gum, recent receipts and perhaps a few photographs are now pretty much gone... To boot, you've now got to deal with the headache of finding those darn phone numbers to let each of your financial institutions know about your predicament.

For those of you that know me, you understand the fact that I've got the memory of a goldfish at times, and delight in the 11th "discovery" of a castle in my fishbowl as I try to re-arrange my filing and room those 3 times a year when I feel super inspired.

One of the steps that I do in between my rousing games of "find my keys and wallet or I don't get to leave the house" is that I scan/photocopy everything in my wallet. Naturally this should happen AFTER emptying it out a little to compete a little bit less with George Costanza Oh, and don't forget to do BOTH sides of the cards.

Jerry: Your back hurts because of your wallet. It's huge.
George Costanza: This isn't just my wallet. It's an organizer, a memory and an old friend.
Jerry: Well, your friend is morbidly obese.
George Costanza: Well, at least I don't carry a purse.
Jerry: It's not a purse, it's European.

No, I'm not going to post a picture of the inside of my wallet here (I'm not that much of a goldfish) but it's a great start to finding all of those much needed phone numbers on the backs of all of your credit and debit cards. (did I mention to scan/copy the backs too?) Plus that usually hides the location of those accursed security numbers that they keep asking for to prevent people from stealing your credit card and using it without finding their secret backside hiding place.

Now I might also mention that it's a good idea to write "Please ask for Photo ID" on the back of your cards as well, so that the person who "found" your money carrying device can't accidentally purchase something by mistake :).

On that note, you might as well order something in for delivery at this point because it'll be fun calling all of your auto-billing memberships, bills, subscriptions, etc to stop payments on things, and then again once you get your new credit card numbers. Better hope you're carrying some cash!

Lastly - if your wallet didn't have anything in it to begin with, perhaps it might be prudent to call up some of those folks over at iPoint to find out what they're up to these days.

Monday, November 19, 2007

Taxes Simply Put (Classic Story)

Ok, I know that this is an old story - but it never ceases to amaze me the number of people who A) Haven't seen this one before, and B) Don't understand this concept.

I'm starting to wonder if the stuff I heard at the last Fast Track to Cash Flow event in Vancouver talking about moving to Alberta because of their great tax structure (comparitively speaking with the rest of Canada) might be a good idea or not...

Anyway, here's the story:

Lets put tax cuts in terms everyone can understand. Suppose that every day, ten people go out for dinner. The bill for all ten comes to $100. If they paid their bill the way we pay our taxes, it would go something like this:
The first four (the poorest) would pay nothing.
The fifth would pay $1.
The sixth would pay $3.
The seventh $7.
The eighth $12.
The ninth $18.
The tenth (the richest) would pay $59.
So, thats what they decided to do.

They ate dinner in the restaurant every day and seemed quite happy with the arrangement, until one day, the owner threw them a problem. "Since you are all such good customers," the owner said, "I'm going to reduce the cost of your daily meal by $20."

So, now dinner for the ten only cost $80. The group still wanted to pay their bill the way we pay our taxes. So, the first four were unaffected, they would still eat for free.

What about the other six, the paying customers? How could they divvy up the $20 windfall so that everyone would get their fair share?

The six paying customers realised that $20 divided by six is $3.33. If they subtracted that from everybody's share, then the fifth and the sixth would each end up being 'PAID' to eat their meal.

So, the restaurant owner suggested that it would be fair to reduce each persons bill by roughly the same amount, and proceeded to work out the amounts each should pay. And so:

The fifth, like the first four, now paid nothing (100% savings).
The sixth now paid $2 instead of $3 (33% savings).
The seventh now paid $5 instead of $7 (28% savings).
The eighth now paid $9 instead of $12 (25% savings).
The ninth now paid $14 instead of $18 (22% savings).
The tenth now paid $49 instead of $59 (16% savings).

Each of the six was better off than before. The first four continued to eat for free. Once outside the restaurant, they began to compare their savings.

"I only got a dollar out of the $20," declared the sixth, pointing to the tenth diner "but they got $10!"

"Yeah, that's right," exclaimed the fifth. "I only saved a dollar, too. Its unfair that they got ten times more than me!"

"That's true!!" shouted the seventh. "Why should they get $10 back when I got only $2? The wealthy get all the breaks!"

"Wait a minute," yelled the first four in unison. "We didn't get anything at all. The system exploits the poor!"

The nine surrounded and beat up the tenth diner.

The next night the tenth diner didn't show up for dinner, so the nine sat down and ate without number ten. When it came time to pay the bill, they discovered something important. They didn't have enough money between all of them for even half of the bill!

That, boys and girls, journalists and college professors, is how our tax system works. The people who pay the highest taxes get the most benefit from a tax reduction. Tax them too much, attack them for being wealthy, and they just may not show up at the table any more.

If you're interested in finding out ways to save those hard earned dollars before the tax man cometh, why not contact a few of the folks at Infiniti Point


Thursday, November 1, 2007

Who's your Dollar?

Loonie could swoon next year, EDC says

Apparently the Canadian Dollar might not be so mighty in the long run in 2008 according to this article from The Globe and Mail .

I'm a mixed bag of feelings at this point because I've got investments on both sides of the fence. But being a proud Canadian, I'll be happy to revel in the sunshine that is a strong Loonie for the time being.

What with the tax rates dropping shortly as well, it's good news for everyone in Canada Land. So here's to the mighty maple leaf in the short term. Why not take a vacation and enjoy the role reversal on the American side for a bit?