I just want to provide you with the latest news since November 2013. In just a few months the Potencial Millionaire Club grew up to 156 members. The number of visiting countries to the blog has increased to 61.
In November 2013, we began a terrestrial radio program on 1410 AM based out of Alabama, USA. In December 2013, we began an internet feed over Podbean, which is available on Itunes. We also began a channel on Youtube and stream over livestream .
In summary, the readers of the blog have tripled and the feed is currently hit on over 5,712 times a month and the book has sold. Yes, one book (Potencial Millonario) started all this. Keep viewing, reading, and listening to the feed and you just might get rich.
Muchas Gracias,
Felix A.. Montelara
Did you know that Potencial Millonario is seen and the Radio program is listen to all over the world?
I just want to say thank you and ask you to follow Potencial Millonario, on Facebook, Google+, Twitter, Linkedin, and other social media like a lot of your friends are doing.
This week in my radio program I will discuss the importance of having an emergency fund, which is a separate savings account that is only used for emergencies. This is not just because it makes good personal financial sense. Saving your money is good advice found in the Bible as well. Proverbs 13:11 states “Dishonest money dwindles away, but whoever gathers money little by little makes it grow.” This passage deals with two aspects of money management: how you earn your money and how you save it.
First, how is your money earned- or is it earned at all? Methods of earning, gaining, or extorting money that involve lying, cheating or stealing will result in an eventual loss of this money. Ill-gotten gains will seldom make one rich, especially in the sense of spiritual richness or richness of life that I have discussed in earlier posts. Money is a means of paying for material things: utilities, homes, clothing, etc. It will not make a person happy by itself. Accruing money dishonestly or using money at the expense of others will result in a negative impact on a person’s life. This negative impact may not be immediately apparent; but someday, somehow, what goes around comes around.
This Scripture instructs us to gain money the right way- little by little, saving up, hard work, and honest means. This may be interpreted as working and saving a portion of your income more diligently, or it could mean carefully making a budget so you can stop wasting your money on unnecessary things. Many families with money problems actually earn enough- they are just unaware of how they are wasting their money. For example, do you know how much you spend on coffee, vending machine snacks, or personal appearance products each month? Could some of that money be saved instead? You would be surprised how much money you waste. This is why it is so important to make an honest budget and to really be aware of all of your expenditures each month. It is likely that each of us could be richer each month if we chose to save rather than waste.
As Proverbs tells us- those who strive to use money carefully and wisely will be rewarded. The reward for the careful gatherer of money is that it will grow. When you begin your savings account, it may seem painfully small. But the Bible encourages us to keep working at it. With time, the savings will grow. God may reward your diligence and care with other positive outcomes as well- but you will never reap those benefits unless you begin the correct way.
I encourage everyone to take a look at how you earn your money and how you save it. You can’t begin an emergency fund or savings account until you understand where your money comes from and where it goes. Keep in mind that as Proverbs says, “whoever gathers money little by little makes it grow.” There is no shame in saving a dollar here or there, if that is all you can afford. Be proud of yourself for gathering that dollar, caring for it, and storing it away. This is how your money will grow, and this is how Scripture instructs us to act.
Potencial Millonario has grown into a radio broadcast at WIQR 1410 am Radio Bama every Saturday @ 0800 hours. Episode 01 will be available ASAP. More information to follow.
Toronto – We like to think we’d stick to our ethical principles no matter what. But when people feel financially deprived — as many did from losses suffered thanks to the last market and banking meltdown — they are more likely to relax their moral standards and transgress to improve their financial situation. They are also more likely to judge other deprived moral offenders who do the same more leniently, says a new paper to be published in Organizational Behavior and Human Decision Processes.
“We found that most respondents did not think financial deprivation would lead them to behave immorally,” said Nina Mažar, an associate professor of marketing at the University of Toronto’s Rotman School of Management and one of the lead researchers of the study. “Yet, once they actually experienced financial deprivation, they were more likely to loosen their ethical principles.”
This could result in workplace sabotage and the pilfering of supplies and equipment, the paper says. Public policies that entrench financial inequalities, such as through regressive taxation plans or tax cuts for the wealthy, could also lead to more cheating inside and outside the office.
And those who interpret or enforce policies or regulations as part of their work — in corporations, law enforcement, or the judicial system — need to be mindful of the deprivation effect too. Temporary upsets in their own financial position could lead them to go easier on others demonstrating unethical behaviour while under financial stress, the paper says.
There are many ways people assess their financial health. But research has found one of the strongest influences is comparing oneself to other people. A sense of financial deprivation can happen when people simply feel financially inferior to their peers.
The findings are based on a series of experiments that studied people’s views about dishonest behaviour, and how they behaved once they were induced to feel financially-deprived themselves. The effects were observed both in experiments where people actually experienced financial loss and in those where they were merely made to feel financially-deprived, relative to others.
The effects were lessened however, when people saw that acting unethically either would be unfair, or would not improve their financial situation — or when they accepted that their financial position was deserved.
Perceptions of fairness were key to participants’ decisions to act honestly or dishonestly, said Prof. Mažar. That suggests that one reason why workplace theft is so common is because employees may see their own, and other colleagues’ financial positions as inferior and unfair, relative to the companies and executives they work for.
Prof. Mažar’s co-authors on the study were Eesha Sharma of the Tuck School of Business, Dartmouth College, Adam L. Alter of NYU’s Stern School of Business and Dan Ariely of Duke University’s Fuqua School of Business.
The Rotman School of Management at the University of Toronto is redesigning business education for the 21st century with a curriculum based on Integrative Thinking. Located in the world’s most diverse city, the Rotman School fosters a new way to think that enables the design of creative business solutions. The School is currently raising $200 million to ensure Canada has the world-class business school it deserves. For more information, visit www.rotman.utoronto.ca.
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For more information:
Ken McGuffin
Manager, Media Relations
Rotman School of Management
University of Toronto
Voice 416.946.3818
E-mail mcguffin@rotman.utoronto.ca
Follow Rotman on Twitter @rotmanschool
The Senate voted to pass a bill which will reopen the U.S. Federal government. The bill will raise the debt limit and President Obama has spoken about the vote. Excellent.
Now if you were one of the 800,000 furloughed employees, what is our take away besides the obvious. I ask, could you have gone two more weeks with the uncertainty of not receiving a paycheck? Let’s not talk about another month without one. I received numerous calls and comments via e-mail around the issue of not having enough money to pay the bills. And that was only after the first pay period which had several paid days missing.
My advice was simply, “You will have to borrow from a family member or make payments by using a credit card until the shutdown ends.” As you know, this is not what we want to do. We would rather receive a paycheck and make our payments on time. However, this shutdown should make you change how you handle your money. If you were not able to make payments out of your savings, you are not managing your money well and that needs to change in the future.
In my book upcoming book Potential Millionaire the third golden rule is, “Establish an Emergency Savings Fund.” This will prevent you from having to borrowing in case of another shutdown, which could happen again. Being self-reliant financially is always a great thing. If you are like me and have saved for a rainy day congratulations. You are part of 25% of America household that learned to manage you money.
Photo by: Lori Quiller
Here is an excerpt from Potential Millionaire on the subject of Emergency funds:
“The unexpected can happen at any time. This is the importance of saving some money for an emergency. You never know what can happen with your work, family, health, among other things. So it’s smart to be financially prepared by having an emergency fund. An emergency fund is savings that you keep separate from your other accounts. Only when it is absolutely necessary is it used in case of true necessity. By stumbling you learn to walk, but it is not that simple. Starting an emergency fund is like the first year of a child’s life. They must strengthen their muscles and develop coordination. With the passage of time the child learns to rollover, sit, and crawl subsequently standing and will start walking. However, some will take more time to reach this achievement. This process will have a series of challenges and skills that require great efforts on your part. As you learned in chapter three, there are habits and attitudes that you must adapt if you want to have new and exciting experiences in winning with money. Once you overcome the challenge of obtaining and completing an emergency fund you will be on the road to financial freedom.
If you attempt to run without knowing how to walk, rest assured that frustration will come and failure will soon be upon you.”
Government shutdown day 10- The Hill is talking with White house Staffers and earlier today President Obama meet with 20 Republicans. As you know by know they are negotiating the issue of the debt ceiling. Needless to say stocks skyrocketed today as investors were encouraged by talk of a deal that may avert a U.S. government default. The Dow Jones industrial average jumped 323 points, or 2.2%, to 15,126 . The Standard & Poor’s 500 index gained 37 points, or 2.2%, to 1,693 and the Nasdaq composite index skyrocketed 83, or 2.3%, to 3,761. What does mean for you? Your TSP, 401K, 457, or 403b made some real money, enjoy. 😉
For my fellow co-workers you will receive a pay check, but if you where originally furloughed it will have about 48 hours of pay. If you were deemed essential will have you 80 hours, congrats. 😉 In my personal case 48 hours is coming tomorrow. I was not deemed essential until after day 8. I am hearing stories of Federal employees that will not be able to pay theirs bills with 48 hours of pay. Furthermore many are not sure if they will be able to a mortgage if the next pay check has zero hours.
I have been working this week not sure if I will receive a pay check at the end of next pay period. I have not had a chance to work on my book Potential Millionaire LE edition but here is an excerpt that may help you in the future when you have an unforeseen no pay check.
Standard Operation Procedures (SOP) for winning with money:
Felix with daugther Anya and son Nicasio (Nick)
Personnel will not spend more than you bring home
Personnel should create passive income
Personnel may earn more income
Personnel must not have debt
Personnel should have a budget
Personnel must establish emergency fund
Personnel must participate in the retirement plan
Personnel will insure assets and life
Personnel should not place all your investments in one nest egg
Personnel should not mortgage you life away
Personnel should save for your children education fund
Personnel must have all legal/financial documents in order in case of an unforeseen emergency
When SOP is followed and applied appropriately financial freedom will be achieved and you will win with money. Please kept in mind these SOPs, since they are only talking about the debt ceiling not re-opening the government.
In 1935, Cret designed the Seal of the Board of Governors of the Federal Reserve System. (Photo credit: Wikipedia)
My layoff has ended; however here is the most important quote of the day, as I see it.
” A growing number of Republicans appear to have convinced themselves that defaulting isn’t actually that big of a deal,” Source , Slate.com
I must make it clear: I am nonpartisan and I am not taking sides on the issue. But the truth is that a U.S. financial default has never happened in the history of the U.S.
I do know one thing when it comes to the micro economics (personal finance) point of view: it is never good to tell your bank, or anyone you owe money to that you can’t pay them this week. There are only three options and they are not good for the debtor:
1. You will have to choose among your creditors which one you will pay and which not.
2. You will pay only the most important debt, because not all debt is equal.
If the United States becomes delinquent on its Treasury debt it is not only wrong but it is deceitful. This is not about not having money to pay but about a bipartisan domestic argument. I truly doubt the debt ceiling will not be raised. As you may know by now Janet Yellen was nominated as the next chair of the Federal Reserve, She will be the first female in U.S. history.
I am currently on my way to completing my newest book, Potential Millionaire (English Law Enforcement edition) and in the book I explain several reasons why we should have life insurance. However, I do not limit the conversation to only life insurance. I write about long and short-term disability and how having accidental-death and life insurance can solve potential problems when there is an unexpected death. Not only will you provide for those you leave behind, such as your spouse and kids, but you will enable them to pay debts like the mortgage and tuition. If you have insurance, they will not be forced out of your home if your income disappears due to death. Imagine if your significant other passed away and you are left with small children. Do you have an idea about how much it would cost for you to keep your current life-style?
I am an advocate for insurance; however, I do not believe you should over insure yourself. You should have appropriate insurance for your personal circumstances. Combining investments with insurance has its place, but I think it seldom works to you advantage. To buy appropriate insurance there are many factors that should be considered, such as what stage of life are in at the time of purchase. When possible, life insurance should be revisited to determine if you have too much or to little insurance. There is a rule of thumb out there that says to buy eight to ten times your salary. That would be fine if you needed that much. If you are in retirement and have done well for yourself, are you at a point where you are self-insured and do not need life insurance? If you are an only child with no heirs, do you need all that insurance? Life insurance may be useful in your estate planning or to leave a legacy of sorts.
I have a will and a power of attorney in case I become incapacitated. I have no debt and have reached financial freedom. I do have a job that I love and life insurance is a part of my financial planning.
Below are some facts obtained from insurance websites for you to consider. Remember we all have Potencial Millonario.
Best regards,
Felix A. Montelara
Author: Potencial Millonario
Author: Potencial Millonario
Consider these facts:
FACT: Thirty percent of U.S. households have no life insurance at all; only 44 percent have individual life insurance.
FACT: Fifty percent of U.S. households (58 million) say they need more life insurance.
FACT: Consumers who believe they need life insurance, 86 percent haven’t bought it because they think it is too expensive.
FACT: Among households saying they are likely to buy life insurance in the next 12 months, 35 percent say the reason they have not yet bought more life insurance is because no one has approached them about it!
Do you know what the most important factor is for people considering purchasing life insurance?
According to a 2013 Barometer Study, getting the proper amount of coverage and understanding what they are buying were the two biggest factors when consumers were asked this question.
Obtain your freedom. Become financially free, because we all have Potencial Millonario.
Happy Labor Day my friends.
Best Regards,
Felix A. Montelara
Author: Potencial Millonario
The Huffington Post
By: Les Leopold Author, “How to Make a Million Dollars an Hour” (Wiley 2013)
Labor Day, established in the late 19th century, “is a creation of the labor movement and is dedicated to the social and economic achievements of American workers,” according to the Department of Labor’s website. It is a “tribute to the contributions workers have made to the strength, prosperity, and well-being of our country.”
But today, much of the “strength, prosperity and well-being” of our hard labor is being siphoned into the coffers of Wall Street. Perhaps, in honor of our labor we should remind ourselves how we are being robbed blind.
The Financialization of the U.S. Economy:
The story starts in the mid-1970s when Wall Street began its long and highly successful campaign to eliminate New Deal financial controls that for a quarter of a century brought stability and prosperity to the nation. By the year 2000 Wall Street had achieved nearly total freedom to run a vast international set of casinos for its own enrichment, just as it had done before the 1929 crash.
Along the way virtually every aspect of the productive economy fell into the financial net. Corporations no longer were about making profitable products. Instead they were designed to please investors with short-term stock price gains. Vast conglomerates like GE made more money from finance than from production. Leveraged buyouts loaded our productive capacity with layer after layer of debt. The net result was the enrichment of CEOs and their Wall Street handlers.
One chart shows clearly how well deregulation worked for Wall Street. During the era of tough financial controls, average incomes in the financial sector and in the rest of the economy were about the same. But as regulations disappeared, Wall Street incomes soared. Making money from money replaced making money from things.
Globalization and Free Trade: The Bankers’ Dream
As banks financed the rapid the globalization of production, more and more of our productive capacity was shipped overseas along with good paying jobs. In fact Wall Street encouraged “free trade” so that developing nations could export to the U.S. in order to pay back their big loans to Wall Street banks. The bigger the debts of these struggling nations, the more Wall Street pushed for free trade. Meanwhile, our middle class standard of living stalled and decayed while Wall Street incomes soared along with CEO pay.
By 2006, Wall Street gobbled up more than 40 percent of all corporate profits. We were well on your way to becoming one of the most unequal countries in the world.
The Wall Street-created crash.
All that gambling and all those toxic assets finally came home to roost just like in 1929. Wall Street imploded taking down the rest of the economy and costing 8 million workers their jobs due to no fault of their own. For the first time in a generation Wall Street was on its knees. This was the time to take the country back from our financial elites. Instead our two Wall Street political parties bailed them out and asked almost nothing in return.
In fact, we asked so little from the $475 billion TARP bailout in 2008, those same bailed banks awarded themselves $140 billion in bonus money in 2009 for a job well done!
How much is that? That’s enough to hire 2.8 million entry level nurses. That’s enough to provide free tuition at every public college and university. That’s enough to prevent all the state and local service cuts that took place due to the Wall Street implosion. Instead we let the richest bankers in the world take our money as a reward for gambling our economy into the ground. Happy Labor Day!
Even Hank Paulson, the former chair of Goldman Sachs and Bush’s Secretary of the Treasury found such raw greed unbecoming: “To say I was disappointed is an understatement,” he said. “My view has nothing to do with legality and everything to do with what was right, and everything to do with just a colossal lack of self-awareness as to how they were viewed by the American public.”
To Paulson, the bonus robbery was basically a bad PR move causing financial elites like him to be viewed negatively by the American public. But really this was just Wall Street being itself, grabbing as much money as possible while adding negative value to the real economy.
The Big Banks Get Bigger
Not only did we bail out the criminal banks who ruined our economy and unemployed nearly 8 million workers overnight, and not only did we let them grab their obscene bonus money, but also, our two Wall Street political parties allowed the biggest banks to become even bigger and to continue to gamble with impunity. (Today, more bank money is used for gambling — proprietary trading — that is used for business loans.)
They are so big that they will have to be bailed out again when they crash and burn. They will keep the upside, while we pay them another round of Labor Day bonuses!
This colossal rip-off won’t be fixed on its own. No magic market forces will tame rising Wall Street-created inequality. No fairy-tale return to the gold standard will rectify the power imbalance between Wall Street and the rest of us. It will take enormous struggles by and for all working people to reverse these incredible injustices.
Hats off to the fast food workers lighting the way with their strikes for a modicum of justice for low-wage workers. Each and every low-wage worker knows what it means to be “working for the man.” Sooner or later we’ll realize that all of us are working for the man on Wall Street, and maybe then we’ll join our fast food brothers and sisters and head to the streets in the name of justice.
That will be a joyous Labor Day indeed.
Les Leopold is the executive director of the Labor Institute in New York. His latest book is How to Make a Million Dollars an Hour: How Hedge Funds get away with siphoning off America’s Wealth (Wiley, 2013).
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