Wednesday 16 January 2013

MONEY DYNAMICS IN TOUGH ECONOMIC TIMES

Money is human happiness
in the abstract

--Arthur Schopenhauer

The topic of money often brings up some conflicted, confusing beliefs about what it is and what it is and what it represents.  Some beliefs are uplifting; others are “down-pushing.”  In reality, money is a symbol of energy and a convenience that was developed in exchange for goods and services.
What a person chooses to do with that energy determines the effect money has on them and others around them.

With money being used as a symbol of exchange it is much less cumbersome than having to barter as we once did. When money is viewed as an exchange of energy it is easier to re-frame what it represents in all our lives. Money is also a method and a tool and even though we can build things with tools the tool and the outer representation of the inner things we want to build. My husband David and I have had gone through a number of ebb and flow times in our personal and professional lives and present a seminar called Money Dynamics. Some of the basic principles are:

Reduce limiting, fear based thinking about money.
Increase positive believes and self-worth.
Take a responsible, mindful approach to making and managing what money you do have.
Establish a credit rating and make sure to make at least the minimum payment each month even when one is not required. Missed monthly payments can affect the overall rating. 
Create a budget and savings plan and stick to it
Consider ways to decrease spending without reducing the quality of life.
Develop an attitude of gratitude about the abundance that you already have.
Create and use positive affirmations about money such as: “I am enjoying the large sums of money that flow into my life, quickly and effortlessly, this or something better for my highest good and the good of all concerned.”

During the process of improving our financial health we began we made some interesting discoveries. It started when we applied for a business loan at our local bank. When we were turned down our bank manger sat down and went over our bureau with us.

She pointed out that we had neglected to update our credit bureaus before applying for the loan.  For example one credit card company had reported the same outstanding balance twice. There were incorrect addresses and names on our report and that looked suspicious to the decision makers and no record of current credit activity. She suggested that obtain a copy, contact Trans Union and begin the process of clarifying information.

We found out that everyone is entitled to one free credit bureau per year. The process to obtain a copy involves sending proof of identity in the form of a driver’s license and utility bill. Health cards are not accepted. There are now two crediting reporting bureaus in Canada, Equifax, Trans Union andand none of them share information. So when applying for any loan it is imperative to find out in advance which one your lender uses and contact them. You are entitled to one free report each year and it is critically important to obtain one and to assure that everything on your bureau is correct including telephone numbers, addresses, employment and to update anything that is not 100% accurate. Be careful not to subscribe to the expensive fraud reporting system that these companies promote.
Our next step was to apply for a loan at our local credit union. They used Equifax and our credit rating and personal information was current and the loan was approved.

A year later we applied for a credit card for our company through Capital One and discovered information about the new anti-money laundering laws the Canadian government has implemented.  The new laws are very strict and any discrepancies can affect the amount of money that lenders can offer.

We also found out that filling out credit applications and having inquiries on your bureau will lower your beacon score. How much we have or do not have. Increasing our financial position. Managing our finances when they get away from us.  

People frequently underestimate some of these key points:
The mportance of keeping track of information on credit bureaus and how to access personal credit reports.
How applying for credit cards affects ratings, interest and beacon scores.
Researching possible investment options such as pyramid schemes, mortgages and other plans. If they sound too good to be true they probably are.
Ways to reduce monthly expenses without reducing the quality of life.
Being realistic about how secure existing jobs and pensions actually are.
Considering whether self-employment is a way of adding to basic income extra tax benefits.

I am a free lance writer, author, life coach, seminar leader and public speaker. For more information on the personal development company I co-founded and co-directed with my hubs David Malloy the website link is: www.fresh-beginnings.com. The website for my book I've Been There~A Testimony of Hope is: www.ibtbookcom. Email: raiawritingroad@gmail.com

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