We spoke in the last posting about the need to make sure your insurance is well thought-out and that your coverage is deep – and that you don’t neglect the human life value components of it.
Here, we look at other points to note when maximizing your financial efficient.
Debt
Have you applied the Cash Flow Index to all your loans? Have you eliminated all double-digit interest rate loans? Do you have a clear plan for eliminating all of your inefficient loans as quickly and efficiently as possible?
Loans
Have you negotiated the best interest rate on your loans? Have you maximized tax advantages and savings by keeping your loan interest tax deductible? Do you have a detailed and coordinated plan to pay off loans you’d like to eliminate?
Accounting and Taxes
Do you have adequate and effective tracking and bookkeeping systems to measure your production?
Are you proactively strategizing throughout the year to save on taxes? Have you reviewed previous tax returns with someone other than your current accountant to see if you can amend returns to recapture overpayment of tax? Is your business set up optimally from a tax and legal perspective? Do you have an exit strategy from a tax perspective for your retirement plans, stocks, real estate or other investments?
Maximize Your Production
Your balance sheet shows your assets versus liabilities to determine whether you have equity (net worth) or debt (more liabilities than assets). The key is to produce more than you consume so that you are creating a positive on your personal balance sheet.
Are you creating more value in the world than you take? Are you clear on your passion, purpose and values, and does your business/career reflect that clarity? Does your business maximize your talents and knowledge to create value for others?
Rockefeller Formula Cash Flow Insurance “Bank”
Do you have your own personal banking system to self-finance and capture interest normally paid to banks?
Credit
Do you know your credit score? Do you know how to maintain or improve it? A 780+ credit score can help you lower your interest rates on existing loans or give you greater access to credit, which can be used to increase your production.
In my next post, I look at what I call the 7 Money Codes that will allow you to really understand money.
In the meantime, I’d love to hear your thoughts on where you are in maximizing your financial efficiency. Thank you for sharing.
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