Not Enough
Posted on 10 August 2011 | 2 responses
“It is not the man who has too little, but the man who craves more, that is poor.”
Seneca (4 BC – 65 AD) Roman philosopher
When we experience being poor, not having enough, we are simply craving for more than what we have. It is thinking that we don’t have enough that has us be poor. It has nothing to do with how much or how little we actually have.
No one else can make us feel poor or feel wealthy, be poor or be wealthy. Only we have that power.
Today, find joy in what you have.
Practical wealth building application & cure:
- know how much you have (track your income, expenses and savings)
- manage how much of your income goes to spending and savings
- have at least 5% of income left after paying all expenses and putting money into savings
How to sell gold jewelry for top dollar, the easy way.
Posted on 12 October 2010 | 5 responses
Gold is selling at historically high level and the price keeps going up as investors fear inflation. Gold closed on Oct. 7th at $1,333.60 per ounce.
I had some single earrings, couple of rings I cast myself in late eighties (that story is for another day), broken pendants etc., so I decided to sell this scrap jewelry. On an internet I found places near me that offered to pay $1,200 per ounce, which I thought was very good given that a jeweler (wholesaler or trader) also has to make money on the transaction, after all they provide a valuable service. So, I gathered my gold pieces and went to the place that advertised buying gold at $1,200 per ounce which was the closest to where I live. I was shocked to discover what they actually paid per ounce of gold!
When I arrived, I handed my gold jewelry to a guy behind a thick glass who tested it for gold content (karat), weighted it and said ”You have 14.29 pennyweights and I’ll give you $300 for it.” When I replied that seemed low he said, “You know we are not paying for the design and this is not a pure gold, its 14 karat.” Yes, I did know and understood the difference. So I asked how he calculated the price he offered me. He actually could or would not tell me anything other than that’s what he’d pay, so I knew it was time to leave. I went home and calculated how much he was offering to pay me per ounce of gold.
Here is the calculation:
- The weight of jewelry 14.29 pennyweights or 22.22 grams
- 1 pennyweight (dwt)=1.555 grams
- Troy ounce = 20 pennyweights = 31.1 grams (Troy ounce is an internationally accepted weight system for precious metals)
- I had 14.29 pennyweight of jewelry= 14.29*1.555=22.22 grams
- The gold content, or the karat of your jewelry (karat tells how much gold is in the jewelry; gold jewelry is not made from pure gold, it’s a combination of gold and other metals)
- 14 Karat (most common for jewelry) contains 58.5% gold per its weight
- 18 Karat contains 75% gold per its weight
- 10 karat contains 42% gold per its weight
- 24 karat is pure gold (100%)
- I had 14.29 pennyweight (or 22.22 grams) of 14 karat gold, so I can calculate how many grams of pure gold is in my jewelry
- 14.29 pennyweights*0.585 (karat)=8.36 pennyweights of gold, or
- 22.22 grams*0.585(karat)= 13.0 grams of gold
- I was offered
- $300 which means (300/13=23.08) $23.08 per gram of gold
- To convert it to $ per ounce it is $23.08*31.1=$717.78 per ounce of gold
Gold is trading at $1,333.60 per ounce gold or $42.88 per gram ($1,333.6/31.1=$42.88).
It turns out he would pay me $717.78 per ounce, a far cry from the $1,200 written on a store window. The guy wanted to buy the gold at 53.8% of current gold price.
This is the first time I ever sold jewelry and I had no clue what to expect. I really know very little about jewelry. I know about trading gold as a commodity, but this is a different game. Rather than driving to find a better paying buyer, I decided to pick up the phone and call other places to see what they’ll pay.
I found a place that offered to pay me $400 for it. Much better I though, and I called others. Most places offered to pay $300. In one place when I said it was low the person talked to the manager and raised the purchase price to $350. Still $400 was the best quote I got from the jeweler on the other side of town. Then I called a buyer close to me, telling him I had the $400 offer and he said he’d give me $396 for it, so I decided to go there. Two trips and 4 phone calls and I got 32% more for my gold or $96 more than the original offer.
Even at $400 for my 13 grams of gold (22.22 grams of 14 karat jewelry) I was paid $956.92 per ounce of gold ($400/13*31.1) or 71.75% of trading value.
Since then I did a bit more research and it appears that with significantly larger quantities buyers may be willing to go higher, maybe up to 80% of trading price. 70% of trading price of gold seems to be a fair market price for scrap gold jewelry.
If you are planning to sell scrap gold jewelry know
- the weight of your jewelry
- karat (gold content)
- the current price of gold (http://www.kitco.com/charts/livegold.html).
Then make calls to multiple buyers/jewelers before you sell.
By the way, most jewelers will tell you a price per gram of jewelry you bring (not per the gold content). In my case 14.29 pennyweights at $300 was (300/14.29=)$20.99 or in grams (300/22.22=)$13.50.
To compare the price you are offered to the trading price of pure gold per ounce do the following calculation:
- Price per gram of jewelry*31.1/karat (that is 0.585 for 14 karat, or 0.75 for 18 karat gold)
- Price in pennyweights of jewelry*20/karat
Get the top price for your gold with ease!
Gold has been a great investment in the past 10 years, and just like any investment it goes down in price at times. To gain a perspective of recent gold prices review the data below.
| Gold | 1980-81 | Oct. 7, 1999 | Oct. 6, 2000 | Oct. 7, 2005 | Oct. 7, 2009 | Oct. 7, 2010 |
| NY close per troy ounce | $500-$700 | $322.30 | $268.90 | $474 | $1,050.60 | $1,333.60 |
Translating your business success to a financial success in business.
Posted on 7 October 2010 | Comments Off
Business success may mean that you launched your business, you have happy clients, and you are selling your products or services. By now you have been doing it for a few years. Many successful businesses are barely surviving financially and it may have little to do with the economy. The level of business activity or revenues is affected by the economy, some business are thriving in this economy while others have been impacted negatively. However, if you mostly have had just enough money to “get by” in business and in personal life, this has little to do with the economy, and it does not have to be that way.
Financial success in business means that the business is profitable and you, the entrepreneur, are receiving the income you planned to receive from your business.
The first and the most critical step in transitioning from having successful business to having financial success in business is knowing and tracking your revenues, all the costs, and knowing if you produced positive or negative profit (net income) on a monthly basis. Most entrepreneurs have an idea of what their revenues are, where they will come from, and what their expenses are. It is the most common misconception among us, that having an idea is all that is needed to have financial success. If you couldn’t tell me in next 5 minutes how much cash you have in your business accounts and the exact amount of revenue and all payments you made last month, you only have an idea, you don’t know the financial reality of your business. Having an idea is insufficient. For small business this is one of the leading causes of not making it through tough economic environment. You are not alone, but ask yourself where do you want to be? It is never too late to start transitioning to financial success, do it now.
Tracking your revenues and expenses monthly does not have to be hard, or require a lot of effort. You can keep all the receipt and give them to your bookkeeper or an accountant, but it can be even easier than that. Software such as QuickBooks makes it easy to organize, track and know on demand your full financial picture. Yes, it takes an effort to do the initial set up so you can get the reports you want, but it is well worth your while and it pays dividends down the road. If you don’t want to do the set up yourself, you can search for a certified QuickBooks ProAdvisor in your local area to help you with it. Here in Atlanta, I recommend contacting Eileen at Fusion CPAs (770-329-3606), which offers customized services tailored to your needs.
Automating the tracking of the financial information for your business will make your life easier, and it will provide you with an invaluable foundation for financial success. The entrepreneurs I worked with that gained understanding of all the costs of delivering their product or service used it to design and plan the future of their business. This made their business more profitable (more money was available to them as the owner) and increased their revenues in ways they have not anticipated before.
Knowing how you’ll make money in business is equally important to knowing how you spend the money in business. When you are intimately familiar with both, you have a solid foundation for growing your business profitably, having financial success in business.
Business success and financial success in business
Posted on 15 September 2010 | Comments Off
What is the difference between having a successful business and having financial success in business?
Success is defined as achievement of something planned or attempted. So, business success may mean that you launched your business, you have happy clients, and you are selling your products or services. By now you have been doing it for a few years. It may, but it does not have to mean that your business is growing right now. The business is making money (revenue). In working with clients I discovered that often when an important client leaves, or an unexpected expense shows up, or something breaks down, the entrepreneur has to figure out if they can quickly make more money, or they have to cut an expense or will not pay a bill this month. Almost every unexpected event becomes an emergency that has to be dealt with immediately. It takes time, energy and a lot of stress. Do you frequently find yourself in this mode?
Typically the owner sacrifices something when unexpected things happen in business. Often it’s something personal, such as time with the family, personal income, leisure, or something they want. And that’s part of what makes the business sustainable. “I just need to make more money” or “I need to work hard” is often the answer to a situation the entrepreneur is facing. That is a hard way to run a business.
Business and financial success do not automatically go together. A business may be successful and thriving with lots of happy clients, but its financial picture may be different. The business could be just making enough money to cover its expenses, or make just enough profit for the entrepreneur to “get by” financially in business and personal life. A business could be bringing lots of revenue, but if the owner, the entrepreneur, struggles having money for what is needed in the business, or is uncertain about having money to pay bills next month, or is unable to hire someone even as sales are growing, that is not a picture of a financially successful business.
Financial success in business is measured by generating planned or near planned level of revenue and profit (net income). Or looking at it another way, business is profitable and you, the entrepreneur, are receiving the desired income from the business. Any successful business has an opportunity to be financially successful. Financial success is a step up from having a successful business.
Entrepreneurs who run financially successful business deal with the business or personal choices with ease, they don’t have to sacrifice. They are focused on the direction the business will take in the future as they adjust the workings of the business to the current and expected business conditions. They plan for the future and set milestones for success. They plan not just to grow the business or maintain happy clients; they plan for the costs that will be involved in growing the business or keeping clients happy. Whether the cost is their time or they’ll pay someone else to do something, they have a way to measure the progress. Having measures and monitoring progress allows them to adjust the actions or the plan, it saves them a lot of time and money. It is also what makes them more likely to achieve their goals: business and personal.
Entrepreneurs who are running financially successful businesses planned for certain level of variability in revenue and in costs. They have cash reserves in the business. They don’t have to take time immediately, scramble or stress over an unexpected event. In the planning process they already identified what adjustments they will make and when they’ll have to make the adjustments. They have time to think and react. This is one of the reasons why running a financially successful business is easier.
Interested in making your successful business financially successful?
Steps and tips in future blog posts…stay tuned
ilona
More Money – Financial Wellness for Entrepreneurs
Posted on 18 August 2010 | 1 response
What a great life it is! Our business reflects our passion. It is easy to get out of bed and do what needs to be done. And we’re successful at it.
And then there is the MONEY! We feel pressure to continuously generate revenue. We can’t stop! If we stop, there is no revenue, and the bills just keep coming in.
Financial wellness tips for entrepreneurs:
1. Separate the business and personal finances.
Because our main or only source of income is our business, separating business from personal finances may appear hard to do. If you would not know how to begin separating personal from business finances, you are not alone. Most entrepreneurs have the two combined in their mind, even if they keep separate accounts or file separate taxes for business. Separating the two is very beneficial:
- It makes financial decisions easier in business and in personal life
- It makes it easier to determine how much profit the business would have to generate to have the desired personal income
2. Determine how much money you want to “take home” from your business
You love what you are doing in your business and you might even do it for free. Although money may not be the reason we are in business, we need money to maintain a healthy life. The benefits of knowing how much money you, as an owner, want to earn from your business are:
- Designing a business that leads to a healthy personal life
- Ability to manage the business for both business and personal success
3. Manage business to attain sustainable growth and the desired personal income
Very often business owners keep what’s left after everyone has been paid and the business expenses are covered. Designing a strategy for your business that leads to the desired financial results for yourself and your business leads to:
- Having a healthy and profitable business
- Having a balanced and fulfilling personal and professional life
Now that you have a successful business, what’s next for you?
You can experience Financial Wellness in your business, and your life. If you like to learn more visit http://www.mywealthskills.com/seminar-for-entrepreneurs/
Money and wellness?!
Posted on 2 July 2010 | Comments Off
Money and wellness just don’t seem to go together. Right now we mostly stress over money, and it is almost impossible to think of wellness when we think about money. Other than we desire or hope for financial wellness. Having lots of money, or being able to write a check for anything we want is what we often consider as financial wellness. It is a myth we are living into and one that keeps us trapped in stressing over money.
Here is a financial wellness thought for the 4th of July weekend.
Financial wellness has two components:
- monetary aspect of wellness- the income we earn, the net worth we have and the net worth we desire, how we spend and manage what we earn
- state of mind aspect of wellness- the quality of life we experience
Financial wellness is personal; there isn’t one income level or net worth, or one way to manage money that is right for everyone. Each person has their own monetary level and a quality of life which reflects wellness. Think of people with lots of money that stress over it and are not happy or fulfilled in life. They don’t experience wellness. On the other hand, think of people you know that have little money and are content and fulfilled. They experience wellness. Financial wellness starts with managing what we have and earn in a way that enables the quality of life we desire to have.
Even the quality of life aspect of financial wellness is personal. Fulfilling on what we value leads to the desired quality of life and financial wellness. What we value is unique to each of us. The state of mind represents the experience of the quality of life.
Our current state of mind is impacted by our current circumstances and our state of mind impacts what we do and how we deal with the current circumstances. Our state of mind is not given by, or determined, by the circumstances. As human beings we have an innate ability to create and manage our state of mind. We are just not taught that skill in schools, so our state of mind is often accidental rather than pursued with purpose, just like wellness could be just accidental or it could be pursued.
Defining your personal financial wellness (the monetary component and the desired state of mind) is a first step in achieving it. Managing your state of mind is as important as managing your money, and both are critical to achieving wellness. Financial wellness begins by dealing powerfully with money, in any financial circumstance, at any income level.
Explore having financial wellness!
Am I doing it right? Home insurance claims and financial wellness- progress report 1
Posted on 2 June 2010 | 1 response
Filing the insurance claim is a new and very interesting experience for me. It is a learning experience! I have hail damage in my house; the whole roof has to be replaced in addition to some interior repairs. I received a claim check form my homeowner’s insurance for my insurance claim. Since I was not sure if the amount of claim was sufficient to make all repairs I asked myself the following questions and here is what I found.
Did the insurance company pay me a correct amount on my claim?
I called 4 roofing companies, 3 of them came and gave me estimates. For years I’ve used Home Reports to find home service providers in my area and I have been very satisfied with the companies they recommend, so again this was an easy way for me to get multiple quotes for the job. I also gave chance to one of the roofing companies that came through my neighborhood.
I was surprised that all the estimates came within 5% of each other. If you ever had renovations or home additions done, you may know that construction estimates vary widely, I’ve seen up to 50% difference in quotes for large projects. It tells me that roof replacement jobs are like a commodity, there is no pricing “wiggle room” for service providers. It may have something to do with the fact that these companies get paid through insurance claim checks, so the insurance companies effectively standardize the pricing, not a bad thing for me. Since all estimates were so close, I have confidence in the costs of repairs and know that my homeowner insurance paid a fair amount on my insurance claim.
I also wanted to know that multiple experts agree on what is damaged.
The rep from the company that came through neighborhood wanted to see the adjuster report to give me the quote. I did not have it and would not want to give it to him as I wanted multiple experts to confirm the amount of damage. I asked him to look at the damages, tell me what he sees and give me an estimate. He reluctantly did that, telling me he needs the adjusters’ report. I was not feeling great about this company when he left. The 2 companies from Home Report were better. I am clueless when it comes to construction. And I learned there is decking under roof shingles. When I think of decking, I think margaritas and back yard. Oh well, as they say, we learn something new every day. I also learned that decking may be one of those things that will change the cost of the job. The roof has to be stripped to see how much decking has to be replaced. Is this too much information for you? I feel the same way, and I do need to take this into considerations. What made a real difference for me, the rep from one of the companies, Superior Roofing, in addition to checking out the roof went into the attic and checked for other signs of damage. He pointed out all damages the insurance adjuster talked about. Thumbs up! So at least two experts agreed on what is damaged.
I want a quality of work to be done on my house for the price of the insurance claim check. Although I did not know how I was going to select the provider, Superior Roofing is on the top of the list because how thorough the rep was in assessing the damage, how detailed he was in his communications with me. I have “gutter toppers” and he wants me to contact that company to reinstall them after the roof is replaced and make sure I don’t void warranty. It’s just a little thing that points to quality of work this company is doing. In my mind, it is not a guarantee but may be a good indication. Stay tuned as I’ll continue to write about this endeavor. I am also speaking to general contractor so all the work, roof and inside repairs, could be done by one company, one person for me to deal with. This would be very valuable to me; I’ll have better financial results by focusing on the Wealth Skills business then selecting another company for inside repairs.
What I learned so far:
- Different insurance companies handle the home insurance claims differently – most of the contractors were surprised that I just received a check and that I did not receive claim adjuster’s report
- Pricing for roof replacements is standardized
The claim check is issued to me and the mortgage company, my bank. I’ve done my “homework” and am ready to deposit it and make final selection of the company which is going to do the work. Off to the bank to deposit the insurance claim check.
Am I doing it right? Home insurance claims and financial wellness
Posted on 11 May 2010 | 8 responses
Have you ever put a claim through on your home insurance? This is a first in my life, making a claim on my home insurance policy. I found it interesting and am learning a lot.
Recent hail storms have damaged a roof on my house, as a matter of fact I’ll have to replace the whole roof. It is not something I expected.
I had several roofing companies come by my house this year because I live in an area that experienced lots of hail. They were ready for me to sign a contract with them and I hear “We’ll would handle the insurance company.”
When I called my insurance agent she told me that I am the only one who can make a claim. Makes sense, I though, since I am the “insured.” She said, don’t sign any contracts with roofing company until you have dealt with the insurance first. I listened and proceeded to file the claim.
My insurance company promptly sent an adjuster who inspected the roof. He was the one who informed me that the whole roof will have to be replaced.
Within couple of weeks I received a check from the insurance company. The claim check was for less $ than I anticipated, but I really have no idea how much does it cost to replace a roof. And this question popped into my mind:
Did the insurance company pay me a correct amount on my claim?
If I am able to make all the repairs, than the claim amount paid to me was correct.
So I decided to get quotes from at least 3 roofing companies. So far, one company came to give me an estimate. I heard how insurance companies make payments sometimes in two installments (the insurer does not necessarily know about it). They will be glad to take the money the insurance sent me and, if the repairs cost more than what I received (plus deductible), they will deal with the insurance company on my behalf. I was forewarned that many roofing companies will give low prices but they use cheaper materials, may not repair those things under the roof shignles (yes, this is how “much” I know about roofs or construction). I listened politely and asked him to go on the roof, tell me what he thinks needs to be repaired, and then give me a quote for the job.
Why do I bother going through all that?
I want to:
1. ensure the amount I was given on my insurance claim is sufficient for the necessary repairs,
2. know that multiple experts agree on what is damaged (certainly I could not tell, and I am not about to take “roof construction 101″),
3. have a quality work done on my house at a fair price.
When I made the insurance claim I had no idea I would take these steps. And these steps seem logical in ensuring I’ll receive value of service I paid for from my insurance company and a value from the roofing company I will hire. This is a key component of financial wellness – being comfortable with the value you receive in exchange for your money.
Stay tuned for updates on how it goes with an insurance claim, the repairs and my wellness.
Is money running your life?
Posted on 26 January 2010 | Comments Off
How do you know if money runs your life?
If you exhibit one or more of the following symptoms consider that money is running your life:
- Regularly procrastinate with paying bills
- Frequently pay bills late
- You earn income but feel you need to make more money to survive
- You frequently go to sleep worrying about money
- You frequently argue about money
- You feel there is no way out of your current financial situation
Why would we even ask ourselves the question? What would be opposite to money running your life?
The first question can be answered easily. When money runs our life the quality of our life is just not what we want it to be; we stress a lot about money. Honestly, we probably wish we could trade places with someone who isn’t in the same situation. As to the second question, when we control what happens with our money we are confident and experience peace about our current financial situation.
When we control our money we:
- Spend less than we earn
- We have financial goals which we pursue
- We save for the future every month
- We have cash saved for emergencies
- We choose our debt wisely
- We do not regret our financial decisions no matter how they turn out
These states are extremes, each giving us totally different experience of life today and a different outlook for our future. Many of us will fall somewhere in between these two states and sometimes we move back and forth on that spectrum.
There is nothing inherent about where we are on that spectrum. No matter what our current situation is we can systematically move forward in the direction we desire and we have to be willing to do that. We often think we have to make dramatic changes to alter anything about our financial situation and the future. Quite frankly, I always want something good and dramatic to happen to change the situation I don’t like. Often times it would require a “divine intervention,” such as winning the lottery or someone I don’t know giving me lots of money (well, I was not born into money so I don’t think I’ll inherit from anyone). Having something unexpected and good happen to me would be so great, but counting on that happening may leave me stuck exactly where I am today, and I don’t like it. The reality is that small changes made (applied) consistently impact our future significantly.
Small foundational steps can significantly improve your financial situation and quality of your life:
- Know how much money you have coming in and where it is going
- If you have credit card debt set a date by when you will pay all the balances off
- If you are earning income increase your savings by 3% of your income (even if you are not saving today).
When reviewing the two states: money running your life and controlling what happens with your money, you may already know what deserves your attention and you may know the next action you will take. If you are uncertain about what to do or how to do it, I recommend you look for financial wellness education, one that provides practical information and teaches you how to move from point A to point B on that spectrum. Financial wellness education goes beyond fixing a particular money problem you are facing today; it will enable you to develop practices and skills that will make a lasting difference in your life. It will “pay you forward.” Wealth Skills offers this unique type of education.
Three steps to reducing financial stress of gift giving this Christmas
Posted on 3 December 2009 | Comments Off
We enjoy giving gifts for Christmas. Many of us experienced change in our financial situation this year, so Christmas may be even more financially challenging and stressful than before.
Here are three things you can do to reduce stress this Christmas season:
1. Set specific “gift giving” budget and stick to it.
Pick the maximum dollar amount you will spend for gifts this Christmas. Sometimes we get a wish list of what people closest to us would like to receive and that is what determines the “budget.” This year, set the budget based on the cash you have. Knowing that everything is paid for makes for a really good Christmas, a nice gift to give yourself.
If you are willing to spend beyond cash you currently have, do not charge more than what you will be able to pay off by mid February. Know how you will pay for it. For example, you may select an on-going expense you will eliminate or lower and that “saving” will pay for the “extra” money for Christmas gifts. Have it all worked out before you buy the gifts. Avoid spending money you don’t have, such as bonuses or commissions you expect to be paid next year.
2. Prioritize your gift giving list.
There are various groups of people on the Christmas (or holiday) gift giving list: kids, spouse, parents, siblings, friends, boss. Depending on a size of your budget this year you may shorten your list of people who will receive traditional (store bought) gifts. Reach out and make specific agreements with each group, agreements that will work for everyone involved. Agreements could range from “Let’s set a limit of maximum $ per gift” to “We will not exchange gifts this year and will celebrate Christmas by…” Given that we are all affected by what happened in the economy these conversation may be very welcomed. Then use your budget to buy gifts for the non-negotiable list of people, for example kids. As a parent you may have received a long “Dear Santa” list of what your kids want for Christmas. If the list stretches beyond this year’s budget, ask your children to select the most important gift on their list or to prioritize the gifts from most important to “nice to have.”
3. Be creative with your gift ideas.
Sometimes gifts that do not involve money have the greatest value to those we love. “Family coupons” redeemable at your convenience have been a hit with my family. My son gave me “I wash dishes after dinner” and “I wash your car” and “I clean my room” coupons one year. Something he doesn’t like to do and knows I would greatly appreciate. He got “You can drive my car,” “Uninterrupted 3 hours to play games,” I’ll take out trash for you today,” which was something I typically responded with “No” when asked. Each coupon could be used just one time and the recipient got to use the coupon when they wanted. The rule was “no lip service” or conditions attached. When the coupon you gave someone was redeemed you just did what the coupon said. I have to tell you, it was a fabulous gift that made the spirit of Christmas present for few months that followed.
Another creative way to approach gift giving this Christmas is to have a family agree on replacing personal gifts with a contribution to an organization or charity that the entire family can align behind. Rather than spending money on yourself, you jointly give to others or a cause that matters.
These are just some ideas. If you look at what you and others on your list value most, you can come up with your own creative ways to celebrate the Christmas.
Bring play to Christmas, it is much deserved!
Happy Holidays to all.
Ilona Dolinska-Reiser