Empowered Women, Empower Households

Whether single, married, widowed, or divorced, women today seek ways to empower themselves and each other. This is especially true for finances and retirement planning. Women are taking ownership of money matters, asking tough questions, and making the choices that are best for their situations.

Women are financial powerhouses.  In two-parent households, 63 percent of mothers work outside the home – with a majority of that group working full time.

1 . According to a 2015 study, 42 percent of mothers are primary household breadwinners – continuing an upward trend over previous years,

2 . Women are financial decision-makers. Women are the majority in the U.S. and already control about 51 percent of the country’s wealth,

3 . In fact, in a 2014 study of women between 25 and 70 years old, only 4 percent of women indicated they were not involved in financial decisions,

4 . Vast majority of women are likely to manage all household finances.

Between their growing influence in the U.S. workforce, and living longer on average than their male counterparts, 90 percent of all women will be solely responsible for their household’s financial well-being at some point in their life due to singleness, divorce, widowhood, or simply by choice.  These statistics paint a clear picture. And now more than ever, it’s important for women to embrace financial responsibility and be empowered consumers.

Additionally, women are also navigating an industry that just a few decades ago was almost exclusively run by – and dealt primarily with – men. This shift leaves a lot to be explored as women and men approach, think about, and manage money differently.

Is Paying Taxes Patriotic?

A lot of people tell me that avoiding paying taxes is somehow “Un-American”. What if told you that paying taxes is the most unpatriotic thing you can do?  Most people get mad at me for even suggesting this. The government needs your money to move and work. If you do not put your money to work, the government will take it from you in the form of taxes and put it to work. So, who thinks the federal government spends tax payers money in the best, most efficient way possible? No one does. “All individual income tax revenues are gone before one nickle is spent on the services that taxpayers expect from their government” – Grace Commission 1984 (Executive Order 12369)

Taxes are designed to incentivize people to put their money to work where the government wants it to be used, and penalize people if they don’t. A great example of this is Georgia and the movie industry. Georgia needed more revenue in the state, so they offered the movie industry big tax incentives to film in Georgia. This has employed thousands directly and indirectly. It has also brought billions of dollars into the state ($9.5 billion as of 2017). The Oil and Gas industry is another example. After 9/11 the US federal government decided that as a nation we were too dependent on oil and gas from countries that hate us. So the government gives massive tax incentives (up to 100%) to investors if they invest in domestic oil and gas. Real Estate is another good example. The government cannot build, or repair houses so they give investors tax incentives to build, maintain and own real estate (you use a tax write-off with your own home). The government can not afford taking financial care of the elderly (medicare and medicaid is bankrupt) so they give people incentives to invest in Insurance (long term care, health and life) to be used when they are elderly. You can get tax incentives for any number of investments if you know where and how to find them. “In America, there are two tax systems: one for the informed and one for the uninformed. Both are legal.” – Supreme Court Justice Learned Hand.

Hopefully by the time we are finished you will be on your way to being in the “informed” group. The strength of every country’s currency is how the money flows and is circulated. Money MUST have a job. Stagnant money does no one any good. Hoarding your money in a bank account (or under the mattress) does not help the economy or our country. The best thing you can do is give your money a job. Find a tax advantaged investment that fits your goals, lifestyle and risk threshold and dedicate all non-working dollars toward that investment or investments. Some argue that they MUST have a minimum of 3 months expenses saved in a bank account for their emergency fund. Having a well funded emergency fund is crucial for a sound financial plan however, if your emergency fund is sitting in a bank account it does not have a job. Your money may be earning 1% if you are lucky and inflation is growing 4% on average. That means your emergency fund is actually costing you 3%. What if you could find a way to put your money to work for you and still be accessible in case of an emergency? An ACTIVE money manager can liquidate your investments within 48 hours if needed, but still working for you if you don’t. The wealthy are taught from an early age how to put money to work for them, how to use the tax code to take advantage of every incentive available and how to strategically spend their money instead of wasting on fleeting desires. These concepts are not taught in school. They are only taught generationally or to those willing to search for the knowledge.

B.Sadler, Financial Life Guards

 

How much does a business start-up cost?

If you were going to start your very own business today, what would you start? What would you do? Would you provide a service? Would you sell a product? And what would your role be in the business? Now, ask yourself how much it would cost to actually start your business. How much would it cost to let people know you started your business? How long would it take before folks starting either buying your product or using your services? And then what would your overhead costs be? Then you have to start thinking about licensing costs and taxes to pay.

If it’s your first business, estimating start-up costs is uncharted terrain for you – and that can be completely terrifying.  Luckily, there are lots of resources out there for brand-new business owners.  The best way to estimate your business start-up costs is by drafting a business plan.  Keep in mind many of the start-up costs may be recurring, so you’ll need to keep paying them over and over again, either on a monthly, quarterly or annual basis:  rent, office supplies and payroll.

Additionally, when calculating your business start-up costs, a good rule of thumb is to be able to cover six months’ worth of expenses up front.  So don’t count on your businesses’ revenue to start easing your costs until after that early period is over.  You’ll want a cushion while you get your feet under you and work on attracting business.

*Start-up Expense                                                Estimated Cost

Equipment                                                            $10,000-$125,000

Incorporation Fees                                               Under $300

Office Space                                                          $100-$1,000 per/ee per/mo

Inventory                                                               $17-25% of total budget

Marketing                                                              0-10% of total budget

Website                                                                  About $40 per/mo

Office Furniture & Supplies                                10% of total budget

Utilities                                                                   About $2 per/sq ft of total office space

Payroll                                                                   25-50% of total budget

Professional Consultants                                   $1,000-$5,000 per year

Insurance                                                              An aver of $1,200 per year

Taxes                                                                    Variable, but 21% corporate rate

Travel                                                                   Variable

Shipping                                                              Variable

*Reported SBA 2018

Now that you’ve had a chance to begin the mental exercise, let’s actually consider a much lower cost and highly effective option. What if you could just partner with someone who is actually doing what it is that you’d like to do? What would the cost be involved and how much time would it take.

With all of that in mind …………….. here is an option to strongly consider.  Work with us, start making money and begin building your future. You then will be able to start building your very own dream business and not be in tremendous debt just starting out!  You never know, you might actually find you enjoy what we do a lot more than you think!

Let’s talk soon.

404-Eclipse (325-4773)

404Eclipse.com

If you never want to work again….

So many people dream about financial independence.  A future in which you no longer have to work for a living. Yes, seems pretty sweet!  However, it’s not easy to get there. It requires making a lot of very difficult decisions and choices along the way.

You have to have a vision for the future.

If you’re doing this simply because sitting around all day playing video games or just binging on movies sounds awesome, you’re probably not going to be motivated to stick with it. You need to have a compelling reason to do this, because it’s that compelling reason that will help push you through.

What would you do with your life if you didn’t have to work for income? What things would you achieve? What would you fill your life with?

Those questions aren’t easy ones to answer. They require a lot of thought and they will likely involve consideration of life paths that you’re not going to follow up on. That’s okay. When you do find the right thing, you’ll know, because it will start to drive you forward.

The key thing is to realize that it is possible. You can make that vision a reality, and when it’s an exciting vision, it can really help drive your life forward.

You have to put a strong check on your short-term desires.

This is the big one. For this dream to happen, you have to start living way below your means.  You simply can’t spend money on every whim and desire that comes your way, because if you do that, you simply won’t have the means to retire early.

That means that you need to go through a rather challenging process of evaluating how you spend every dollar and asking yourself whether that dollar spent is providing a lot of long-term value in your life. If it’s not, you need to cut that spending.

This doesn’t mean living like a hermit. This means that when you do spend money, you’re spending it on things that will have a lot of value in your life for a long time.

You have to start investing for the future.

Simply spending less isn’t enough. You’re also going to have to take the extra money that you earn and don’t spend.  Invest it sensibly.

Contact Eclipse Financial Division to discuss a financial roadmap for you to reach your goals and dreams. Regardless of what you choose, the most important thing by far is that you start saving and start saving now and start saving as much as you can.

404-Eclipse (325-4773)