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HIDDEN TREASURE


2


Dollars & Sense Past, Present and Future


Past Awareness Scripture: Luke 5:38 – “…new wine must be poured into new wineskins…”


Who does your credit represent: the OLD you or the NEW you?


Awareness ď śHaving awareness of overall

debt state which includes your credit ď śCredit is a representation of who you were


Present Budget Scripture: Proverbs 16:3 – “Commit thy work unto the Lord, and thy thoughts (PLANS) shall be established”


bring back to your mind repair of your mind

Renew your mind Refresh your mind restore of your mind

Renewing of your mind renovate of your mind


2 Corinthians 10: 3-6 “…to the pulling down of strongholds…”

Poor spending habits


2 Corinthians 10: 3-6 “…casting down imaginations…”

Get rid of that stinkin’ thinking


BUDGET: A PLAN ď‚— An estimate of income (resources)

and expenditures for a set period of time. ď‚— The amount of money that is

available for, required for, or


Your “PLAN” Tailor Your plan

to Your Life.

Include even the

smallest expense.

Plan to Commit!

(Prov. 16:3)


MONTH: JANUARY

Due Dates

Income/Expense

Amount Due

Pay Check 2

1,000.00

1,000.00

200.00

(100.00)

(100.00)

-

41.67

(20.83)

(20.83)

-

400.00

(400.00)

Income Tithes

Remaining Balance

Pay Check 1

Notes

SAVINGS Savings (GOAL: $500) HOUSING 1/1

Mortgage/ Rent

-

Conf #: 4501248602221

Water Gas Lights 1/24

Cell phone

89.00

(45.00)

44.00

DID NOT PAY FULL AMT


MONTH: JANUARY

MEALS Groceries

200.00

(100.00)

(100.00)

10.00

(10.00)

(8.00)

Car Note/ Lease

300.00

(150.00)

Gas

120.00

(60.00)

85.00

(85.00)

50.00

(25.00)

-

Kids School Lunch Work Lunch Food outside of home

(8.00)

OVER SPENT

(150.00)

-

Conf #: 134082

(60.00)

-

TRANSPORTATION 1/13

1/2

Insurance

-

Automatic draw: Ck 1

-

Automatic draw: Cks 1&2

MEDICAL 1/28

Health Insurance Life Insurance

(25.00)


MONTH: JANUARY

PERSONAL CARE Clothing

1/28

30.00

(30.00)

-

Cleaning/ Dry cleaning

7.00

(3.50)

(3.50)

-

Personal trainer/ Gym

20.00

(10.00)

(10.00)

-

200.00

(200.00)

-

25.00

(25.00)

-

(964.33)

(777.33)

36.00

35.67

222.67

His Hair Her Hair Kids Hair Eyelashes & eyebrows MISCELLANEOUS

Movies (dvds, redbox, etc.) Phone Case, Apps, etc. Video Games Total Remaining Bal (apply to stale)

NOT PLANNED


Where else is your money is being spent? ATM fees Check cashing/ Money Order fees Minimum Balance fees Monthly Maintenance fees Convenience fees Late fees


ATM’s to use


Solutions You will ONLY become what you are becoming today! Stick to a predetermined decision and budget Accountability partner


Future Who To Pay Scripture: 2 Corinthians 5:17 – “Therefore if any man be in Christ, he is a new creature: Old things are passed away;


Who to pay? Tithes – a 10%of your income Taxes – Possible 20% of income Yourself – 10% of your income THEN Bills – 60% of income or less


Have some goals Three Months savings


Have some goals


Q&A 29


 Click to edit Master

text styles

30


By: Leonard Miller


Table of Contents  Determine Your Budget  Purchase Plan New or Used       

Auto Assess Your Insurance Costs Secure Auto Loan w/ Best Interest Rate Caution w/ Manufacturer Finance Know the Invoice Price Research, Rebates, and Discounts Find the Car fax Pre-owned Trade in Value/ Negative Equity


Determine Your Budget 

For many consumers an automobile purchase new and used will be the second most expensive purchase during your lifetime

With an ongoing monthly expenses (monthly payments, insurance, maintenance, etc.) this will be a significant portion of your monthly budget.

All the cost that associated with owning an automobile, you must consider all the cost of what you can afford.

1st take a look at your annual and monthly income to determine how much you can afford with your auto buying decision.

Some things to assume you will need will be financing your purchase for your automobile.

What can you afford? A good rule of thumb is to never exceed 20% of your total net monthly income (after taxes)

For an example: If your net monthly income your monthly auto payment should not exceed $400/ month

Be mindful you also need to pay for auto insurance


Determine Your Budget 

Once you determine a monthly payment that comfortable for you , How much cash do you have for down payment?

It’s always best to put as much money down as possible when using and auto loan to reduce the interest that you’ll pay over the time of the loan.

For your trade in , determine your value to estimate how much money you can get for selling or trading your automobile.

Have you considered what types of financing options are available to you, it is best recommended that you obtain your credit score and report with understanding your auto finance options.

There are auto buying calculators on the internet to help you determine the outcome for monthly payment and determine the loan

Also, don’t forget the cost of tax, title, and registration should be included in your total auto buying decision.

Remember when your discussing price with an auto dealer or private party the total out


Determine Your Budget 

Your credit score and credit report is very important process in determining what type of auto you can afford. You need to understand what type of financing programs you may qualify for. Check your credit report and score for accuracy.

Your credit history and the 3 credit bureaus create your scores to help financial institutions to analyze your credit and ability to pay back the loan.

Be mindful of FICO scores w/ all 3 credit bureaus calculating your scores can range with the number spectrum of 300-850 on your credit report information. 1. 720-850 Excellent / Super Prime 2. 680- 720 Good/ Prime 3. 4. 5.

620- 680 Fair/ Near Prime 550-620 Poor/ Sub Prime 550-Below Bad/ Deep Sub Prime

So analyze your credit report and credit scores to find out where you are within these areas.


Determine Your Budget   

 

Fair credit you may qualify for financing online or through any bank. You may qualify, however financing at higher interest rates. Good or excellent credit you will have many options available to you qualifying for lower interest rates. Golden rule never visit an auto dealer without knowing your credit report and score. It is best to try and have prequalified for your auto financing with reputable source then shop


Purchase Plan New or Used 

Do your research to help you evaluate and compare new or used autos based on price, gas mileage, safety rating, and reviews.

Quality auto dealers will provide and limited warranty certifications/ inspections with a Car fax for pre owned autos.

Buying from a franchise dealer has unique advantages which includes: they have been in business for many years they have service departments and a large selection of inventory.

However, franchise dealers have overhead cost to maintain a large dealership so they may have higher prices on their vehicles.

When purchasing, a good word of advice to always ask for the internet manager, they understand that buyers use the


Purchase Plan New or Used 

Independent auto dealers are licensed by your state to sale used vehicles, their dealerships and inventory size maybe smaller than the big guys.

Sometimes there are plenty of high quality independent auto dealers that may provide a fair deal even if you have credit problems. To help buyers with poor or bad credit purchase an older model vehicle at a lower price.

They may offer in house financing to establish credit.

Private party is an individual selling their auto on their own so buying may offer the best way to get a possible lower price.

You can potentially save a lot of money by purchasing from a private owner with no overhead cost, but take the time to


Assess Your Insurance Cost  Auto Insurance concerns

sometimes getting the lowest rate won’t be the best deal if your left with poor coverage compare auto policy quotes, plans, and coverage.  Auto insurance option whether your buying new or used simply compare offers with different companies for your design situation compare all major carriers.  In addition when checking rates with carriers pay attention and review coverage, deductibles, and policy details.


Secure Auto Loan w/ Best Interest Rate 

Auto loans you need to have full understanding of your personal credit position.

Before you pursue any auto loan, it’s highly recommended having a copy of your credit report and score.

This determines if you qualify for best rates with banking lenders.

If you have good to excellent credit you can be prequalified for your new or used auto purchase.

Once being pre approved you have flexibility to shop around with auto dealers.


Secure Auto Loan w/ Best Interest Rate 

Be mindful for special incentives like rebates, (cash back) or lower rates that can save you a lot of money.

In the event you have fair to poor credit its unlikely you’ll be able to purchase a new auto b/c you are a high credit risk.

Banking lenders will only allow a purchase for a lower cost vehicle that’s used with a higher rates.

Many lenders offer special sub prime rates or you may have to consider a buy here pay here auto loan deal with a private dealer.

Receive special pricing with local banks and credit union if you have an existing credit history, also


Caution w/ Manufacturer Finance 

  

Once your pre approved consider new auto buying incentives which includes: rebate offers, sometimes these offers can be used to lower the principle price of the auto or financing incentive that will pay back the price of the auto with a lower rate. Use references to discuss with the dealer of how much your willing to pay. Once both parties can agree on price you need to discuss financing. If you currently have a vehicle to include as a trade in then it’s important to discuss your trade in after agreeing on the pricing of your new auto. Don’t give the dealer the advantage of knowing you have a trade in until you finalize the price of your new purchase.


Know the Invoice Price 

Some buyers get a great deal, and some pay full price.

For these reasons all consumers need to scrutinize the dealers actual cost which is called “Dealer Whole back” a sum of money paid to the dealer by the manufacturer autobuying101 after the car is sold.

This “whole back” can make up anywhere from 1 to 3% of the price of the auto.

“Whole back” is a built in rebate that spikes the dealers invoice price.

For example, if the manufacturer wants $20,ooo from a dealer it might need to pay a 2% “whole back” once the car is sold, the


Know the Invoice Price 

Now the official invoice price appears once broken down the dealer gets check for $400 at “whole back” inexact number.

So the base MSRP or the final invoice price allows the dealer a number of following benefits which includes to sale at invoice price and still make money.

Check the internet with your buying decision for “whole back” percentages.

Some things to consider when shopping have a copy of your driver license versus giving the sales person your drivers license to hold you at the dealership robbing you of your time.

This is a wise trick of some dealerships to detain you at their lot and sometimes running unauthorized credit checks.


Find the Car Fax Pre owned 

Do your home work with auto buying so your not getting a lemon.

When it comes to purchasing avoid major problems by getting the auto history report (car fax) and also check the auto VIN number.

These two factors will provide a history of previous ownership and auto checks.

This extensive information will enlighten you with a report that covers title status (clear, stolen, salvage) ownership history, repair history etc.

Basic information can be obtained for free while the most important information might have to be purchased for a full background


Trade in Value Negative Equity 

  

Avoid talking to any dealers about trading in your auto until you find out the value of your trade in by selling to a private party vs. the value of the auto as a trade in. Consider all of this information in your negotiations with the dealer. If any equity (value) minus any amount that owed on your auto loan. Keep all facts in mind when evaluating a trade in offer, the auto dealer is going to want to pay you minimum. Beware if you have negative equity on your current auto loan for trade in the negative balance is included on your new purchase. Which places you in more negative equity going into the future, which will take possibly thousands of dollars out of your pocket.


No Credit Bad Credit 

Obtaining an auto loan can be one of the best ways to establish or rebuild your credit.

Starting out it’s best to focus your purchase with a used reliable auto.

The best ways to receive an auto loan is to connect with specialized lenders working with new or bad credit situations.

Auto financing with new or bad credit can be very restrictive giving a smaller loan amount with an older model maybe in


No Credit Bad Credit 

These lenders will require a decent down payment to qualify for your loan sometimes as much as 20% or as low as 10% down payment.

For instance, any typical auto loan from lenders or dealers will give you restrict guidelines in order to grant the auto loan.

The interest rate for new or bad credit is more likely to be a much higher rate than someone with good to excellent credit.

All lenders will consider your prior credit history with


Q&A 50


Q&A 52


The Value in

WISDOM PROVERBS 2:1-11


Wisdom + Money Ecclesiastes 7:11-14 Wisdom is good with an inheritance: and by it there is profit to them that see the sun. For e Wisdom is a defense, and money is a defense: but the wisdom giveth life to them that have it. Consider the work of God: for who can make that straight, which he hath made crooked? In of the day prosperity be joyful, but in the day of adversity consider: God also hath set the one over against the


Tithes-the tithes is God’s portion of our increase. It is not the left overs, it is the first part, the first fruit. 1 Corinthians 16:2,Prov 3:9,10    When this given to the lord he promises to stretch the rest to meet our needs. We are to bring our tithes and offerings to Gods storehouse. Mal 3:10 The storehouse is the place where the people are fed God’s Word. Neh 10:38 Tithes are used to support full time ministry, Number 18-21   Offering- are over and beyond tithing, The offering is what we give to the Lord after we have paid the tithe. The offering is a seed for financial increase. Giving releases men to give to us. 2 Cor 9:6-8, Pro 11: 24-25 First fruits-is prioritizing God’s presence in your life. First fruits provide the foundation and structure for God promises and blessing in your life. The first set the pattern for the rest. The first represents the total-whatever the first portion is used for determines what will happen to the rest. Rom 11-16 Prov3: 5,6,9,10    


Q&A 61


62


Overview • W-4 & PAYSTUBS • FILING STATUS, DEADLINES AND FORMS • WHERE AND WHO SHOULD FILE YOUR TAXES • UNDERSTAND YOUR TAXES • Q&A


Filing Your Taxes


FILING STATUS • • • • •

Single Married Filing Jointly Married Filing Separately Head of Household Qualifying Widow(er) with a dependent child


GENERAL TAX FORMS • 1040 • 1040A (short form) • 1040EZ


INFORMATIONAL FORMS • • • • • • •

1098: Mortgage Interest 1098-E: Student Loan Interest 1098-T: Tuition Statement 1099-INT: Interest Income 1099-MISC: Miscellaneous Income 1099-R: Retirement Distributions SSA-1099: Social Security Benefit


Where to File


BEWARE OF SCAMS


BE HONEST


TAX KNOWLEDGE


Quick Facts and Definitions • • • • •

Income Expenses Deductions Credits Exemptions


Q&A 79


Small Business DOLLARS AND SENSE PRESENTS “HIDDEN TREASURES”


Small Business Finance ď‚— Deuteronomy 8:18 (NIV)

But remember the LORD your God, for it is He who gives you the ability to produce wealth, and so confirms His covenant, which He swore to your ancestors, as it is today. Everything we need is on the inside of us and our talents were all given to us by God Himself. He gives us the ability to make money and cut deals.


Starting your Business *WRITE YOUR BUSINESS PLAN*

(detailed description that serves as the “resume” for the business, identifying its goals.)

HABAKKUK 2:2-3 “WRITE THE VISION, AND MAKE IT PLAIN UPON TABLES, THAT HE MAY RUN THAT READETH IT. 3 FOR THE VISION IS YET FOR AN APPOINTED TIME, BUT AT THE END IT SHALL SPEAK, AND NOT LIE: THOUGH IT TARRY, WAIT FOR IT; BECAUSE IT WILL SURELY COME, IT WILL NOT TARRY.” THE U.S. SMALL BUSINESS ASSOCIATION HAS A WEALTH OF DETAIL ON STEPS OF HOW TO START AND LEGALIZE A SMALL BUSINESS (HTTP:// WWW.SBA.GOV).


Starting your Business

*DETERMINE YOUR LEGAL STRUCTURE * SOLE PROPRIETO RSHIP

NONPROFIT

PARTNERSHI P

S CORPORATI ON

LIMITED LIABILITY COMPANY

CORPORATI ON


Legal Structure SOLE PROPRIETORSHIP ď‚— A sole proprietor is

someone who owns an unincorporated business by himself or herself. However, if you are the sole member of a domestic limited liability company (LLC), you are not a sole proprietor if you elect to treat the LLC as a corporation.

PARTNERSHIP ď‚— A partnership is the

relationship existing between two or more persons who join to carry on a trade or business. A partnership must file an annual information return to report the income, deductions, gains, losses, etc., from its operations, but it does not pay income tax. Instead, it "passes through" any profits or losses to its partners.


LIMITED LIABILITY COMPANY (LLC) 

A Limited Liability Company (LLC) is a business structure allowed by state statute.

Owners of an LLC are called members. Most states do not restrict ownership, and so members may include individuals, corporations, other LLCs and foreign entities. There is no maximum number of members. Most states also permit “single-member” LLCs, those having only one owner.

A few types of businesses generally cannot be LLCs, such as banks and insurance companies. Check your state’s requirements and the federal tax regulations for further information. There are special rules for foreign LLCs.

Depending on elections made by the LLC and the number of members, the IRS will treat an LLC as either a corporation, partnership, or as part of the LLC’s owner’s tax return (a “disregarded entity”). Specifically, a domestic LLC with at least two members is classified as a partnership for federal income tax purposes unless it files Form 8832 and affirmatively elects to be treated as a corporation. And an LLC with only one member is treated as an entity disregarded as separate from its owner for income tax purposes (but as a separate entity for purposes of employment tax and certain excise taxes), unless it files Form 8832 and affirmatively elects to be treated as a corporation.


CORPORATION  In forming a corporation, prospective shareholders exchange money,

property, or both, for the corporation's capital stock. A corporation generally takes the same deductions as a sole proprietorship to figure its taxable income.  A corporation can also take special deductions. For federal income tax purposes, a C corporation is recognized as a separate taxpaying entity. A corporation conducts business, realizes net income or loss, pays taxes and distributes profits to shareholders.  The profit of a corporation is taxed to the corporation when earned, and then is taxed to the shareholders when distributed as dividends. This creates a double tax. The corporation does not get a tax deduction when it distributes dividends to shareholders. Shareholders cannot deduct any loss of the corporation.


S CORPORATION ď‚Ą

ď‚Ą

ď‚Ą

S Corporations: S corporations are corporations that elect to pass corporate income, losses, deductions and credit through to their shareholders for federal tax purposes. Shareholders of S corporations report the flow-through of income and losses on their personal tax returns and are assessed tax at their individual income tax rates. This allows S corporations to avoid double taxation on the corporate income. S corporations are responsible for tax on certain built-in gains and passive income. To qualify for S corporation status, the corporation must meet the following requirements: 1. Be a domestic corporation. 2. Have only allowable shareholders including individuals, certain trust, and estates and may not include partnerships, corporations or non-resident alien shareholders. 3. Have no more than 100 shareholders. 4. Have one class of stock. 5. Not be an ineligible corporation i.e. certain financial institutions, insurance companies, and domestic international sales corporations. In order to become an S corporation, the corporation must submit Form 2553 Election by a Small Business Corporation (PDF) signed by all the shareholders.


NONPROFIT ď‚— A NonProfit

is an organization incorporated under state laws and approved by both the state's Secretary of State and its taxing authority as operating for educational, charitable, social, religious, civic or humanitarian purposes. ď‚— A NonProfit corporation (also called "not for profit corporation") is formed by incorporators, has a board of directors and officers, but no shareholders. These incorporators, directors and officers may not receive a distribution of (any money from) profits, but officers and management may be paid reasonable salaries for services to the corporation.


Starting your Business *MAKE YOUR BUSINESS LEGIT *

Register a Business Name ("Doing Business As"): Register your business name with the State of Georgia. (Generally, sole proprietorships are not required to register with the state. In most cases a sole proprietorship registration is handled through the county and/or city in which the primary place of business will be located. They are required to register with the state only if they choose to incorporate their business, establish a limited liability company or a limited partnership.) (http://sos.georgia.gov/ firststop/first_stop_business_guide.htm)

Name reservations for corporate entities can be completed online or by mail through the Secretary of State’s Corporations Division. There is a $25.00 filing fee for the name reservation service.

To reserve a name online: Visit the Corporations Division website at www.sos.state.ga.us/corporations. The filing fee can be paid online with a credit card.

To reserve a name by mail: Send a written request to the Corporations Division, including the requestor’s name, address, telephone number, and email address, as well as the prospective name of the entity along with a check made payable to the “Secretary of State.”


Starting your Business *MAKE YOUR BUSINESS LEGIT *

APPLY FOR AN EMPLOYER IDENTIFICATION NUMBER (EIN)


Do you have employees?

YES

NO

Do you operate your business as a corporation or a partnership?

YES

NO

Do you file any of these tax returns: Employment, Excise, or Alcohol, Tobacco and Firearms?

YES

NO

Do you withhold taxes on income, other than wages, paid to a non-resident YES alien?

NO

Do you have a Keogh plan?

YES

NO

YES

NO

Are you involved with any of the following types of organizations? •Trusts, except certain grantor-owned revocable trusts, IRAs, Exempt Organization Business Income Tax Returns •Estates


The Financial Side of Business *RECORD KEEPING*

WHY SHOULD I KEEP RECORDS? WHAT KIND OF RECORDS SHOULD I KEEP? HOW LONG SHOULD I KEEP RECORDS? WHAT IS THE “BURDEN OF PROOF”?


RECORD KEEPING THE “WHY” ? Why should I keep records? Good records will help you monitor the progress of your business, prepare your financial statements, identify source of receipts, keep track of deductible expenses, prepare your tax returns, and support items reported on tax returns.

THE “WHAT”? What kind of records should I keep? You may choose any recordkeeping system suited to your business that clearly shows your income and expenses. Except in a few cases, the law does not require any special kind of records. However, the business you are in affects the type of records you need to keep for federal tax purposes.


RECORD KEEPING THE “HOW”? The length of time you should keep a document depends on the action, expense, or event the document records. You must keep your records as long as they may be needed to prove the income or deductions on a tax return. Be sure to keep all records of employment taxes for at least four years.

“BURDEN OF PROOF”? The responsibility to prove entries, deductions, and statements made on your tax returns is known as the burden of proof. You must be able to prove (substantiate) certain elements of expenses to deduct them.


The Financial Side of Business *BUILDING & UNDERSTANDING FINANCIAL STATEMENTS*

“THE BASICS” SHOW ME THE MONEY!


The Financial Side of Business *BUILDING & UNDERSTANDING FINANCIAL STATEMENTS*

BALANCE INCOME STATEMENT

CASH FLOW

STATEMENT OF SHAREHOLDER’S EQUITY


*BUILDING & UNDERSTANDING FINANCIAL STATEMENTS* (THE FOUR MAIN FINANCIAL STATEMENTS)

BALANCE SHEET 

Balance Sheets show what a company owns and what it owes at a fixed point in time.

Assets are things that a company owns that have value.

Liabilities are amounts of money that a company owes to others (loans, rent, payroll, etc.) Liabilities also include obligations to provide goods or services to customers in the future.

Shareholders’ equity is sometimes called capital or net worth. It’s the money that would be left if a company sold all of its assets and paid off all of its liabilities.

INCOME STATEMENT Income statements show how much money a company made and spent over a period of time.  An income statement is a report that shows how much revenue a company earned over a specific time period (usually for a year or some portion of a year).  An income statement also shows the costs and expenses associated with earning that revenue.  The literal “bottom line” of the statement usually shows the company’s net earnings or losses. This tells you how much the company earned or lost over the period. 


*BUILDING & UNDERSTANDING FINANCIAL STATEMENTS* (THE FOUR MAIN FINANCIAL STATEMENTS)

STATEMENT OF SHAREHOLDER’S EQUITY

CASH FLOW Cash flow statements show the exchange of money between a company and the outside world also over a period of time.  Cash flow statements report a company’s inflows and outflows of cash. This is important because a company needs to have enough cash on hand to pay its expenses and purchase assets.  While an income statement can tell you whether a company made a profit, a cash flow statement can tell you whether the company generated cash. 

Also known as "equity" and "net worth", the shareholders' equity refers to the shareholders' ownership interest in a company.


BUSINESS TAXATION *THE WHAT, WHEN, WHERE & HOW*

THE LEGAL STRUCTURE YOU CHOOSE FOR YOUR BUSINESS WILL DICTATE: •

IF YOUR BUSINESS IS REQUIRED TO FILE TAXES.

WHAT TAX FORMS YOUR BUSINESS IS REQUIRED TO FILE.

WHEN THE BUSINESS IS REQUIRED TO FILE.


BUSINESS TAXATION *TAX DEDUCTIONS* What can I deduct?

To be deductible, a business expense must be both ordinary and necessary. An ordinary expense is one that is common and accepted in your trade or business. A necessary expense is one that is helpful and appropriate for your trade or business. An expense does not have to be indispensable to be considered necessary. IT IS IMPORTANT TO SEPARATE BUSINESS EXPENSES FROM PERSONAL EXPENSES


*TAX DEDUCTIONS* What can I deduct?

DEDUCTIONS, ETC.

DEDUCTIONS, ETC.

COST OF GOODS SOLD

BUSINESS USE OF YOUR CAR

CAPITAL EXPENSES

RETIREMENT PLANS

BUSINESS USE OF YOUR HOME

RENT EXPENSE

EMPLOYEES’ PAY

BUSINESS START-UP COSTS

INTEREST

IMPROVEMENTS

TAXES

BUSINESS ASSETS

INSURANCE

MEALS & ENTERTAINMENT


Q&A


Dollars & Sense presents Hidden Treasures: Financial Seminar