Cashflow Management

"The most powerful force in the universe is compound interest." -Albert Einstein

The basic concept of compound interest is so remarkable that it is arguably more important than understanding any advanced theories of investing. This is because the sooner you take advantage of compound interest, the more wealth you will be able to ultimately attain. Of course if you think money is the root of all evil, you need not look any further.

So what exactly is compound interest? Say you have $100. You put that money in a bank that promises you a 5% annual return. After one year you will have $105 ($100 plus the $5 interest). The next year you will once again receive 5% return. However, now that your account has grown by $5, you will be getting 5% return on $105. At the end of the second year you will have $110.25 ($105 plus $5.25 interest). You have gained an additional $0.25 in added interest from the previous year. Not impressed yet? As Wyclef Jean said, "Don't worry." Let's elaborate on this concept further.

I will use a mock retirement plan in my example. Let's say that a 35-year-old is just starting to contribute to his retirement plan and would like to retire at the age of 67. At 35 he puts $5,000 as his initial retirement contribution, and each year until retirement he will add an additional $5,000. Let's further say that he invested everything in the S&P 500 index, which has returned about 11.36% annually since 1985. To summarize, the retirement time window is 32 years (67-35), $5,000 in contributions each year, and an 11.36% annual return. Total lifetime contributions ($5,000 x 32) = $160,000. At 67 he will have $1,640,800! That comes out to 1,025% return on investment (ROI), not too shabby.

And, best of all, we're just getting started. Let's keep everything the same from the previous example, except let's assume that instead of being 35 years old, he is 25. Now, at 67, he will have $4,907,000 (3,067% ROI)! What if, instead of contributing $5,000 a year, he decides to contribute $10,000 year? With a starting age of 25, at 67, he will have $9,800,000!

Let's play around with other variables. Instead of the index fund, let's assume he invested in American Growth Fund. Over its lifetime it has returned an impressive 15.5% return, but let's use a more conservative figure of 12.87% return which the fund has garnered over the past 10 years. This is 1.5% higher return than the S&P index return of 11.36% we used in the previous example. To recap, a 25-year-old with a retirement age of 67, and $5,000 annual contributions with an 11.36% annual return had $4,907,000. With the new 12.87% annual return, however, that same person would have $7,847,700 (4,905% ROI)! An additional 1.5% annual return, yielded a 60% higher ROI.

The earlier you start your contributions, the greater the benefit of compound interest will be on your portfolio. To illustrate this point let us take a look at one more example. The initial condition we used was a 25-year-old, with $5,000 in yearly contributions, and an 11.36% return. Assume now that we are dealing with a 45-year-old with the same retirement horizon of 67. The time to retirement is now cut to 22 years. Let's also say that the 45-year-old will contribute twice as much as the 25-year-old, or $10,000 annually. The same 11.36% interest will apply. Recall that at 67, the 25-year-old had $4,907,000. The 45-year-old at 67, however, will have $1,054,000. Not only did the 45-year-old contribute twice as much as the 25-year-old, he still ended up with 1/4 the amount of money, and a disappointingly low ROI of 330%.

The main idea is to start contributing to your retirement as early as you can, and as much as you can.

Interactive calculations, dynamic graphs and fully customizable reports are just a few of the features that make the calculators stand out!

You can find it in this site http://www.ipers.org/calcs/

Response to money is largely dictated by our personality. Understanding our personality in regards to money is the first step and will help us shape our approach to spending, saving and investing. So what's your money personality? Read on to find out.

What's your type?
Money personalities have been analyzed in a variety of ways and many people can identify with aspects of several profiles. They key is to find the profile that most closely matches your behavior. The major profiles are: big spenders, savers, shoppers, debtors and investors.

Big spenders
Big spenders love nice cars, new gadgets and brand-name clothing. Big spenders aren't bargain shoppers; they are fashionable and they are looking to make a statement. This often means a desire to have the smallest cell phone, the biggest plasma TV and a beautiful home. When it comes to keeping up the Joneses, big spenders are the Joneses. They are comfortable spending money, don't fear debt and often take big risks when investing.

Savers
Savers are the exact opposite of big spenders. They turn off the lights when leaving the room, close the refrigerator door quickly to keep in the cold, shop only when necessary, and rarely make purchases with credit cards. They generally have no debts and are often viewed as cheapskates. Savers are not concerned about following the latest trends, and they derive more satisfaction from reading the interest on a bank statement than from acquiring something new. Savers are conservative by nature and don't take big risks with their investments.

Shoppers
Shoppers derive great emotional satisfaction from spending money. They often can't resist spending money, even if it's to purchase items they don't need. Shoppers are usually aware of their addiction to spending and are even concerned about the debt that it creates. They look for bargains and are pleased when they get a good deal. Shoppers will often shop to entertain themselves, even if the items they buy go unused.

Shoppers are an eclectic bunch when it comes to investing. Some invest on a regular basis through 401(k) plans and other automatic investments and may even invest a portion of any sudden windfalls such as bonuses or inheritance money, while others view investing as something they will get to later on.

Debtors
Debtors aren't trying to make a statement with their expenditures, and they don't shop to entertain or cheer themselves up. They simply don't spend much time thinking about their money and therefore don't keep tabs on what they spend and where they spend it. Debtors generally spend more than they earn and are deeply in debt and they don't put much thought into investing. Similarly, they often fail to even take advantage of the company match in their 401(k) plans.

Investors
Investors are consciously aware of money. They understand their financial situations and try to put their money to work. Regardless of their current financial standing, investors tend to seek a day when passive investments will provide sufficient income to cover all of their bills. Their actions are driven by careful decision making, and their investments reflect the need to take a certain amount of risk in pursuit of their goals.

Advice for your personality
Once you recognize yourself in one of these profiles and have put some thought into how you approach money, it's time to see what you can do to make the most of what you have. Sometimes making just small changes can yield big results.

Spenders: Shop a little less, save a little more
If you love to spend, you are going to keep doing it, but you should seek long-term value, not just short-term satisfaction. Before you splurge on something expensive or trendy, ask yourself how much that purchase is going to mean to you in a year. If the answer is "not much", skip the purchase. In this way, you can try to limit your spending to things you'll actually use.

When you channel your energy into saving, you have another opportunity to think long term. Look for slow and steady gains as opposed to high-risk, quick-win scenarios. If you really want to challenge yourself, consider the merits of scaling back.

Savers: use moderation
Ben Franklin once recommended "moderation in all things". For a saver, this is particularly good advice. Don't let all of the fun parts of life pass you by just to save a few pennies.

Tune up your savings efforts too. Pinching pennies is not enough. While minimizing risk is any investor's prime goal, minimizing risk while maximizing return is the key to investing success.

Shoppers: Don't spend money you don't have
A critical step for shoppers is to take control of their credit cards. Unchecked credit card interest can wreak havoc on your finances, so think before you spend - particularly if you need a credit card to make the purchase.

Try to focus your efforts on saving your money. Learn the philosophy behind successful savings plans and try to incorporate some of those philosophies into your own. If spending is something you use to compensate for other areas of your life that you feel are lacking, think about what these might be and work on changing them.

Debtors: Start investing
If you are a debtor, you need to get your finances in order and set up a plan to start investing. You may not be able to do it alone, so getting some help is probably a good idea. Deciding on who will guide your investments is an important choice, so choose any investment professional carefully.

Investors: Keep up the good work
Congratulations! Financially speaking, you are doing great! Keep doing what you are doing, and continue to educate yourself.


Knowledge is power
While you may not be able to change your personality, you can acknowledge it and address the challenges that it presents. Managing your money involves self awareness; knowing where you stand will allow you to modify your behavior to achieve your desired outcome.

STEP 1: CITY/MUNICIPAL ASSESSOR’S OFFICE
SECURE THE FOLLOWING:

1. Certified True Copy of Tax Declaration (House and Lot)
2. Certificate of No Improvement (If vacant lot)
2 Original Copies – 1 for BIR and 1 for Register of Deeds

STEP 2 : CITY/MUNICIPAL TREASURER’S OFFICE
SECURE A TAX CLEARANCE

*In order to secure a Tax Clearance, Real Property Tax must be updated as of date of document of sale.

STEP 3: BUREAU OF INTERNAL REVENUE
PAY THE FOLLOWING:

1. Capital Gains Tax (6% for individual seller or 7.5% for corporation)
2. Documentary Stamps Tax (1.5%)

Note:
*Capital Gains Tax and Documentary Stamps Tax shall be based on Selling Price (per Deed of Sale)
, Market Value of Tax Declaration, or BIR Zonal Value, whichever is higher.

*Form for Capital Gains Tax can be secured from the BIR or can be downloaded from the BIR website http://www.bir.gov.ph

Requirements:

a. Photocopy of Certified True Copy of Transfer Certificate of Title
b. Certified True Copy of Latest Tax Declaration
c. Real Estate Tax Clearance
d. Original and two (2) Photocopies of Deed of
Absolute Sale
e. Certificate of No Improvement from the Assessor's Office if vacant lot.

Additional Note:

a. Payment for Capital Gains Tax and Documentary Stamps Tax shall be in cash or in managers check, to be paid to the BIR Regional office or BIR-authorized banks where property is located.

b. Capital Gains Tax shall be filed and paid to the BIR within thirty days from date of sale.

c. Documentary Stamps Tax shall be paid on or before the 5th day of succeeding month from the
date of sale.

STEP 4: CITY/MUNICIPAL TREASURER’S OFFICE
Pay the Transfer Tax at the Treasurer's Office.
Requirements:

a. Photocopy of Deed of Absolute Sale
b. Photocopy Transfer Certificate of Title
c. Photocopy of Tax Declaration
d. Photocopy of Real Estate Tax Clearance

*Transfer Fee is 1/2 of 1% of Selling Price or Market Value of Tax Declaration, whichever is higher

STEP 5: REGISTER OF DEEDS
Submit to the Register of Deeds where property is located the following documents:

a. Owner's Duplicate Copy of Transfer Certificate of Title
b. Deed of Absolute Sale (3 copies)
c. Certificate Authorizing Registration from
the BIR
d. Transfer Fee Receipt
e. Photocopy of Real Estate Tax Clearance
f. Photocopy of Tax Declaration or if vacant lot, Certificate of No Improvement

A NEW TITLE UNDER THE NEW OWNER’S NAME WILL BE RELEASED BY THE RD

REMINDER: The owner or the broker as authorized by the owner should be the one to present the above documents to the Register of Deeds because the new TCT shall be released only to the presenter of the above documents

STEP 6: CITY/MUNICIPAL ASSESSOR’S OFFICE
Secure from the Assessor's Office a new Tax Declaration.

Requirements:

a. Photocopy of Transfer Certificate of Title under the new owner’s name, duly authenticated at the Assessor's Office
b. Photocopy of Deed of Absolute Sale
c. Real Estate Tax Clearance

IMPORTANT:

Always bring Certified True Copies of the documents as well as necessary receipts to avoid inconvenience in case you will be required to present them.

1. Look around. Love at first sight does not always work when scouting for a house. There are many borrowers who end up liking something else they see in their neighborhood and are stuck with the first one they jumped at. Not a good situation to be in.

2. Do a thorough soul-searching on your needs and what you can afford. They are not always the same, but even a tentative scribbling of preferences on a table napkin can significantly lessen the time needed to find that dream home. This will also help you determine whether you might be better off renting or buying your own home.

3. Double-check the integrity of the developer. If you are trying to take advantage of pre-selling prices, make sure the developer won't run away from its promises.

4. Make sure the property is free of liens. Home buyers who fail to double-check if the titles they are buying are clean and authentic end up with court cases.

5. Make sure your credit history is squeaky clean. Banks investigate character first above all things. Did you bounce a check? Abuse a credit card? All these things will show up in your credit report and can be reason for you to get declined.

6. Look for a bank that is customer-centric. Banks that understand their customers and value the relationship will give payment leeway when needed.

7. Can the bank decide on your application fast enough? Most banks have a five to 10 days processing time. This matters to consumers because they already have a pent-up need or they are worried someone else will snap up the property they are eyeing.

8. Beware of steep pre-termination fees. If you decide to pay off your mortgage loan ahead of time, you may get charged anywhere from one percent to 5 percent of the total loan amount.

9. Take the time to understand the terms and requirements. Most borrowers are too focused on interest rates and getting the loan approved that reading the fine print becomes too much of a chore. Big mistake. There are many other costs to taking out a mortgage loan like mortgage redemption insurance, which protects banks when you fail to pay.

10. Don't buy anything you haven't seen. A picture on the Internet may be worth a thousand words, but make sure you still check the property out with your own eyes, or that of someone you trust.

11. Think of your purchase as the stepping-stone for a better home. It takes a lot of guts to take the plunge and borrow a big amount of money. But if you know that this is not your last home, you're more likely to buy a house that you can afford.

Part I - The Rat Race
The “Rat Race” is the inner circle on the game board. (The Rat Race is where most of us are
trapped day-in and day-out.)
Your goal is to get out of the Rat Race and onto the Fast Track.
To get out of the Rat Race you must buy investments which give you cash flow (or passive income) so that your Passive Income is greater than your Total Expenses.

Part II - Fast Track
The “Fast Track” is the outer track of the game board. (The Fast Track is where the Rich play the game of money.)

Once you’ve moved from the Rat Race to the Fast Track your goals are to:
1) BUY YOUR DREAM
The Dreams are the pink spaces on the Fast Track
and/or
2) INCREASE YOUR MONTHLY CASH FLOW

You win CASHFLOW® if:
1) You are the first Player to buy your Dream.
If a Player buys their Dream on the Fast Track then that Player is the winner and the game is over.
or
2) You are the first Player on the Fast Track to accumulate $50,000 in Fast Track Cash Flow by
buying Fast Track businesses (green squares).

1) Elect one Player to act as Banker. The Banker should be someone good with numbers and able to handle cash transactions quickly. If the Banker is also playing the game then they must keep
their own game money separate from the money of the Bank.

2) Shuffle the Opportunity, The Market and Doodads cards. Place them face down on the game
board on their marked places.

3) Distribute one Income Statement/Balance Sheet to each Player. This is your “Game Card”.
Take a moment to review the Game Card. Get familiar with the form and the words.

4) Shuffle the Profession cards and randomly deal, face down, one to each Player. Distribute
one pencil to each Player. Each Player then turns over their Profession card and enters the
information from it, exactly as it is written, onto their Game Card.
Note: Each Player starts the game with no bank loans, no bank loan payment, and no children.

5) Meet your Auditor. This is the person on your right. The Auditor’s role is to assist you in
making accurate calculations. Each time you make a change to your Game Card your Auditor
must check your work.

6) The Banker distributes cash to each Player. The amount of cash each Player receives at the
beginning of the game is:
a) The Player’s Monthly Cash Flow (income minus expenses, on your Game Card). Your
Monthly Cash Flow is also your Pay Check.
b) The Player’s Savings (listed on your Game Card). Your savings is only paid to you at the
start of the game. Erase the savings amount from your Game Card once you receive it.
Savings is not part of your Pay Check.

1) Select a Banker for the game.
2)Place *Opportunity, The Market and Doodads cards on board.
3)Distribute a Game Card (Income Statement/Balance Sheet) to each Player.
4) Deal out one Profession Card to each Player.
5)Transfer information from Profession Card to Game Card.
6)Meet your Auditor. (Player to your right.)
7) Banker distributes cash (Monthly Cash Flow + Savings) to each Player.
Remember to erase savings from your Game Card once you receive it.
8) Choose your playing pieces; Rat, Cheese and Tokens, all of the same color.
9)Choose your “Dream” on the Fast Track by placing your Cheese piece on it.
10) Place your Rat playing piece on “Start Here” arrow on the Rat Race.
11) Roll die to see who goes first.
12) Begin playing CASHFLOW®!

Remember:
• To get out of the Rat Race your Passive Income must be greater than your Total Expenses.
• To build up your Passive Income, buy assets that provide a positive cash flow.
• Read the *Opportunity, The Market and Doodads cards aloud. Every card could affect your
financial position.
• Beware of Bankruptcy. Be smart with your investments.
• Adjust your strategy as the market changes.

*Big Deal and Small Deal Cards

Some tips to lessen your expenses.

Divide your credit card payments

Instead of paying $200 once a month, pay $100 twice a month. Since the finance charges are based on your average daily balance, you will reduce your monthly finance charge without paying any more than you already do. Dividing your credit card payments requires a bit more involvement than most effortless budget cuts do, but not too much.

Review your phone plans

Do you still use your home telephone or do you just keep it around because you’re accustomed to it? If everyone in your household has a cellular phone, then consider dropping the landline and save yourself the monthly payment.
When is the last time you looked at your cellular plan? I'm not going to tell you to try talk less or watch your minutes (that is painful), but look at your statement or call your company to find out what your average usage is per month. Could you use a less expensive plan based on your monthly average? If you can, make the change and save yourself the extra money.

Disconnect electric devices when not in use

You have probably heard that electronic devices continue to suck energy after you’ve turned them off if you've left them plugged in. You can save a lot of money by unplugging your electronic devices when you are not using them. This does require some effort, but the easiest way to do this is to use power strips, so you can unplug multiple devices with one plug. It might sound like a hassle, but doing it will cut down your power bill substantially. The Organization for Economic Co-operation and Development estimates that standby power accounts for 3% to 4% of residential electricity use.

Buy generic prescriptions and food

If you haven’t started using generic drugs, you need to start right away. You’ll get the same drug for a fraction of the cost. According to the National Association of Chain Drug Stores, the average retail price of a generic prescription drug purchase in 2006 was $32.23, while brand-name drugs went for an average of $111.02. The same idea can be applied to food. Don’t be afraid to buy the knockoff items in your local grocery store. Most of the time, generic food products are produced and packaged at the same facility and just receive different labels. Because off-brand companies typically do not advertise, their production costs are cheaper. These effortless budget cuts could save you upward of 25% on your bill.

See the animated explanation of how Cashflow 101 works. Click here

1. Money in a bank account is safe.

A bank is one of the safest places to stash your cash since your account is insured against loss by the government. In Philippines account is insured up to P250,000 per depositor and might increase to P500,000 per depositor.

2. You pay for the convenience of a bank account.

Banks pay lower rates on interest-bearing accounts than brokerages and mutual fund companies. And watch out for bank fees especially if your account is below the minimum required balance.

3. Inflation can eat what you earn from a bank.

Even at a low rate of inflation, the annual creep in the cost of goods and services usually outpaces what banks pay in interest-bearing accounts.

1. Understand and overcome the obstacles to build wealth
2. Know what you want and dream big
3. Find out where you are and what you have.
4. Make savings a lifelong habit
5. Spend your money wisely
6. Get out and stay out of debt
7. Find ways to earn more, to save more
8. Prepare for life's financial challenges
9. Plan for a hassle-free and comfortable retirement
10. Grow your money through smart investing
11. Take care of your health to enjoy your wealth
12. Share your blessings and receive more riches

Source: 12 Steps to Build Wealth on Any Income by Alvin Tabañag

TIP #1: Never...Ever...Quit.
I believe that there are many things to understand to succeed at the game. But, for me, the most important is: NEVER, EVER, EVER, EVER QUIT -- ON YOURSELF! No matter how you feel, NEVER QUIT!
– Kathleen M

TIP #2: Step Out of Your Comfort Zone.
CASHFLOW 101 is so powerful because it reflects your true behavior and allows you to take risks in a safe environment. Step out of your comfort zone, and do things you may not feel comfortable doing in the “real world.” You’ll be amazed at how it changes your perspective.
– Jack N

TIP #3: Celebrate the Joy of Success.
The biggest 'tip' I have learned so far is that your way to wealth is the joy- not the wealth- you achieve. This became very clear to me after playing dozens of times and realizing that I would actually SKIP the Dreams on the Fast Track! I was more interested in winning the game than 'golfing around the world.'
– Jeff B

TIP #4: Focus on Your Goals.
I found that while playing the game, I would focus on the 'negative' spaces – "Baby" or "Downsized" – and hope not to land there. I was focusing specifically on what I didn't want, and, oddly enough, landing on those spaces most often. I began to repeat the numbers I WANTED to have come up, and just as oddly, those numbers seemed to come up more than mere chance would support. The lesson is simple: focus on your goals, not on what may go wrong.
– Hugh C

TIP #5: Only Take Advice from Successful People.
When the Opportunity Card comes up, some people look to fellow players for guidance. Make sure that those you take advice from are having success and on their way to getting out of the Rat Race!
– Cal J

TIP #6: Your words are your reality. Never Say “Can’t.”
There is ALWAYS a way. Think outside the box. Find a way to make your “can’t” a “can.”
– Grace N

TIP #7: Take Note of Your Overall Habits.
After playing the game, take note of your overall habits- good and bad. Evaluate how those habits helped or hindered your game play. In the next game, make a concerted effort to change the habits that may have prevented you from getting out of the Rat Race.
– Toni E

TIP #8: Get Rid of Bad Debt.
The thing that has expedited my exit from the Rat Race: Paying off ‘bad debt.’
– Bridget S

TIP #9: Create Your Own Rules.
Creating your own rules (or modifying the game rules) can make CASHFLOW 101 more challenging. For instance, play a game where you and your teammates: (a) Pass on purchasing $1 & $5 stock deals; (b) Remove $0 down real estate transactions; (c) Remove all the doodad cards that are $100 or less.
– Dylan B

TIP #10: Don’t Limit Yourself.
Along with bad debt, there is good debt. Don’t limit yourself to your cash on-hand. The lower the price of the stock, the more money you should borrow. When you eventually sell your shares, your rate of return will more than make up for any bank payments you have to make.
– Roosevelt C

TIP #11: Give Back.
Giving back is a necessary step in getting out of the Rat Race. Newton’s law states, “For every action there is a reaction.” Give and you shall receive.
– Lisa N

TIP #12: Put Your Ego on the Shelf.
The game has showed me some things about myself I never would have guessed- like the fact that my ego gets me in more trouble than anything else. The deals you turn down count just as much as the deals you make. Don't let your ego get you in over your head.
– Tami R

TIP #13: Be Able to Make Quick Decisions.
As Robert says, “Fortune favors the prepared mind.” When the “Opportunity Card” comes up, you need to be able to determine if it is a good or bad deal quickly. Otherwise, just like in the “real world,” you might miss a great opportunity.
– Phil L

TIP #14: Learn From Your Mistakes.
Mistakes are opportunities to learn something new. Take risks, make mistakes… and be smarter for it!
– George C

TIP #15: Give Feedback to Fellow Players, Not Advice.
Feedback occurs after the action, advice happens before the action. Your fellow players will learn more if you tell them what they did and how they might try a different approach next time, rather than telling them what to do and how to do it.
– John D

TIP #16: Reinvest Your Cash.
Don’t let it sit there doing nothing… get your money working for you so you can get out of the Rat Race!
– Jenny M

TIP #17: Learn From Others.
Take note of fellow players’ winning game strategies. Next time, test them out for yourself.
– Cheridan S

TIP #18: Overcome Fear.
Fear isn’t the problem; it’s how you handle fear: specifically, the fear of losing money. Losers are defeated by failure. Winners are inspired by it.
– Jorge T

TIP #19: Always Look For Opportunities.
No matter where you are in the game… always be on the lookout for opportunities.
– Elle J

TIP #20: Reflect on Lessons Learned.
Always think about what you can learn from the game you just played. You may not always have time to reflect on the game as it is played (and sometimes it is more interesting NOT to play, but to just observe!), but you should always take time later to think about the game and what it taught you. This is part of the educational process and so it should be savored. You can learn a lot about how investing works, how well your investment strategies pay off, and what it takes to exit the real Rat Race.
– Dave G

Download the torrent client.

1. Open in a new browser http://download.utorrent.com/1.8/utorrent.exe to download the torrent client
2. A dialog box will appear asking if you want to Save or Run/Open
3. Click the Run/Open to download and install the client.
4. Just follow the installation procedure. (Usually just NEXT and/or YES button)


Once the client is installed. You need to download the torrent file.

1. Open in a new browser http://dl.btjunkie.org/torrent/Robert-Kiyosaki-Cashflow-101-and-202/443269cd49fbf40a8bc8170ab73a1e7e63ebf87eb4c2/download.torrent to go to the torrent site.
2. Click the title "Robert Kiyosaki Cashflow 101 and 202" to download the torrent file
3. It will automatically open uTorrent, then you will be given an option which files are to be downloaded. Click Okay button(Default all are checked)
4. Wait until the downloading is finish. If "Done" column says 100% downloading is already finished.
5. To find where the game is located in your pc, right click the game then select Open Containing Folder. The folder contains 3 iso files namely CashFlow101 Play Disk, CashFlow 101 Data Disk, and CashFlow 202


Burn / CD write the Cashflow iso files. (CD writer needed)

1. You need to download a software that can burn .iso file. Open in a new browser http://www.gburner.com/gburner24.exe to download GBurner.
2. Install. Just follow the installation instructions.
3. Open gBurner. You can find it in Start > All Programs > gBurner > gBurner
4. Click File > Open in the menu or Click the Folder Icon. Select the .iso file from step 5 above.
5. Put the blank CD in your CD writer.
6. Click Burn.
7. Click Ok
8. Wait until the burning complete.
9. Repeat step 4 to 8 to the other 2 .iso files


You now have a CashFlow 101 and 202 CDs.

Listing Expenses.

Start personal budgeting by first listing and then prioritizing your expenses. Although most expenses are monthly or weekly, some expenses are annual, semi-annual, quarterly, or just plain unexpected. In addition, some expenses are discretionary.

Discretionary expenses are part of your normal out-of-pocket expenses – the things you typically buy that you could live without, but chances are you won’t. Failure to budget for discretionary expenses is one of the top budget busters.

Unexpected expenses

• Home repair & maintenance


• Medical bills(Doctor, Dental, Eye care, Chiropractic, Prescription Drugs)


• Vehicle repair & maintenance

Annual, semi-annual, quarterly expenses

• Homeowners’ Association fees


• License renewals (drives, vehicles)


• Professional fees (accountants, attorneys, tax preparation)


• Property taxes


• Insurances (life, home, health, auto)

Monthly expenses

• Bank loans


• Child support payments


• Credit card payments


• Household rent or mortgage payments


• Internet Connection


• TelephoneTelevision Cable/satellite connections


• Utilities (heat and electric)


• Vehicle leases or payments

Weekly expenses

• Child Day Care


• Groceries


• Personal Care (clothing, bath & beauty, toiletries)


• Transportation (bus, gasoline,)


• Savings

Discretionary expenses

• Books, magazines, entertainment, impulse purchases, snacks, dining, vacation & travel, membership fees...

• Top priorities on any expense list are food and shelter. Shelter includes your rent or mortgage payment, real estate taxes, and any home association or other housing expenses that may lead to the loss of your home.


• Next in line are essential utilities like heat, electricity, and water service.


• Car loans or lease payments and car licensing fees are essential to your budget if your vehicle is essential to your job.


• Home insurance (if not a part of your mortgage payment), or renter’s property insurance, vehicle insurances, and medical insurances should also hold a place on your list of priorities.


• Along with discretionary expenses, low priority expenses include unsecured loans, and credit card payments. Make sure your personal budget takes care of essential expenses and then consider the rest.

Practical Budgeting

Put the amount of money you had left after tracking your spending at the top of your budget. Next, add your net monthly income. You may have calculated this when you tracked your money, but if you didn’t your net income is the money you take home each month. If you’re paid weekly, multiply your weekly take home pay times 13 and divide by three to calculate your average monthly income.

Add these figures together. Your total is your available cash for this month’s personal budget.

List your expenses by priority. List the total amount of each expense and the date it is due.

• Transform weekly expenses into monthly using the same method you used to calculate your net income.


• Divide annual, semi-annual, and quarterly expenses by 12, 6, and 3 to calculate a monthly figure for your budget. If these expenses aren’t due this month, add these funds to savings.


• Use data from tracking your spending to determine your discretionary expenses.
  Include a monthly figure for the unexpected. If possible, find receipts, total them, and divide them to determine what is practical to expect from the unexpected. If nothing unexpected occurs during the month, add these funds to your available cash next month.


• If you’re not saving regularly, do budget money for saving. Having a money reserve (savings) to fall back on in an emergency can make or break your budget.

Making Your Personal Budget Work for You

When you begin personal budgeting, it’s not uncommon to find your expenses total more than your income. Always take care of top priorities first. Then work on making practical decisions for the rest of your expenses.

• If you don’t have enough money to take care of the priorities, you will need to find a way to generate more cash.


• If an expense isn’t a priority, roll it into next month’s budget. However, if you can’t pay a bill or meet a minimum payment, do contact your creditor and let them know. Tell your creditor when you will be able to pay the bill. Don’t let creditors make budget decisions for you.


• Look over discretionary expenses and see what you realistically are willing to sacrifice to make your budget balance.


• Can you cut down on groceries and personal care items? When shaving dollars from these expenses, consider purchasing generic items and store brands for a few weeks (or months) until your budget is under control.


• Will your utility company allow you to make partial payment on utility bills?


• Could you carpool or take alternate transportation for a couple of weeks to save on vehicle expense?

Budgeting is a money management tool that shows you what money you need to make ends meet, live comfortably, and increase your wealth.

In tracking your money, you found out what you have now and what you can reasonably expect to earn. In tracking your spending, you found out what your typical pattern of spending is.

Here are some of the reasons why budgeting often fails.

1. Failure to prioritize expenses.
2. Failure to budget practically for normal out-of-pocket expenses like groceries and gas.
3. Failure to plan for the unexpected.
4. Failure to include quarterly or annual expenses.
5. Spending more money than you pocket.

1. Prioritize.
List down all your debt from highest interest to lowest.

2. Focus on paying the debt.
Focus paying debt with the highest interest first while paying the minimum on the others to avoid late payment charges. Once you're done with the first, add the amount you paid monthly on that account to the second debt, effectively pushing down debt at an accelerated pace. Do this until you finish paying all your debt.

3. Avoid new debt.
If you can't pay it cash, then you can't afford it.

4. Save, save, save.
Keep a healthy emergency fund of three to six month of your monthly consumption so that you don't have to borrow heavily when you need the money.