Money Mastery: 10 Principles That Will Change Your Financial Life Forever

312 Pages·2002·2.87 MB·English

by  Alan M. Williams, Peter R. Jeppson, Sanford C. Botkin

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Team-Fly®
Money Mastery
10 Principles That Will Change
Your Financial Life Forever
by
ALAN M. WILLIAMS
PETER R. JEPPSON
SANFORD C. BOTKIN
Franklin Lakes, NJ
Copyright © 2002 by Alan Williams, Peter Jeppson, Sanford Botkin
All rights reserved under the Pan-American and International Copy-
right Conventions. This book may not be reproduced, in whole or in part, in
any form or by any means electronic or mechanical, including photocopy-
ing, recording, or by any information storage and retrieval system now known
or hereafter invented, without written permission from the publisher, The
Career Press.
Money Mastery
Copy edited by Dianna Walsh
Typeset by John J. O’Sullivan
Cover design by Design Concept
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Library of Congress Cataloging-in-Publication Data
Williams, Alan M.
Money mastery : 10 principles that will change your financial life forever /
by Alan M. Williams, Peter R. Jeppson, Sanford C. Botkin.
p. cm.
Includes index.
ISBN 1-56414-610-3 (pbk.)
R. II. Botkin, Sanford C. III. Title.
HG179 .W5336 2002
332.024—dc21
2001058427
Acknowledgments
M oney Mastery is a work of the ages. Its ideas, principles, and
methods are the accumulated time-value works of the finan-
cially secure from ancient to modern times. It is precisely for
this reason that Money Mastery cannot be considered the
work of just a few and to recognize all that have contributed to this book
would be impossible—it is truly the work of many. However, the authors
wish to acknowledge those individuals who have been instrumental in the
creation of this work and who have inspired and enlightened us as we have
sought to bring the power of the Money Mastery ideas to you, the reader.
We must first acknowledge George S. Clason’s ageless compilation of
The Richest Man in Babylon as the wonderful philosophical basis for the Money
Mastery principles. The essence of paying oneself, dealing forthrightly with
debt, and seeking financial mentors is what this book is built upon.
To Larry Adamson, a friend and partner, we express thanks for his tech-
nical expertise and inspiration in helping create a total financial management
system that helps people make the most of the money they already have and
aids them in finding additional wealth they never dreamed possible.
We wish to acknowledge Suzanne Kimball, the managing editor of this
book, for her expert skills in the creative direction, composition, and over-
all tone of the work. This book would not have been possible without her
capable management of the project from start to finish, and her understand-
ing of the greater purpose and impact of the Money Mastery principles in
people’s lives. Suzanne has immersed herself in those principles, and lives
the work. The book could not have been written without her.
We express appreciation to Gary Weinberg, the CEO of National Semi-
nars, whose life’s work has been to educate hundreds of thousands of people
about how to have a better and more effective life, and who encouraged us
to bring the Money Mastery concept to the masses.
A special thanks goes to Tom Murphy, author and writer, who saw the
need for a good “how to” publication on financial management and who
encouraged us to write this book. His experienced perspective has guided
its development.
To Financial Health Educators’ formative partners, Glen Willardson and
Lyle Shamo, we give thanks for their long pursuit of a satisfactory means to
convey their spending and debt management ideas. We will always be grateful
for their friendship.
We acknowledge Jim Christensen and Clint Coombs, the authors of Rich
On Any Income, who have contributed to the Money Mastery program with
class and dignity. Their sincere help and support of our complete develop-
ment and presentation of the tracking systems is greatly appreciated. We
will always be grateful for their inspiration.
We especially wish to thank the thousands of clients and seminar par-
ticipants who have personally validated the principles and concepts presented
in this book. Almost every strategy found within has come from observing
these participants’ financial lives. Without our clients, these strategies would
be mere thoughts, but from their experience we have seen the absolute le-
gitimacy and inspiration of the Money Mastery principles and Tax Strate-
gies taught herein.
Not the least of those to be acknowledged are our family and friends
who have contributed to, made suggestions for, and lived the Money Mas-
tery and Tax Strategies systems and tested them to the maximum. Your
patience and love has been empowering.
Finally, we express our thanks to you, the reader, for taking the time to
seek out this book. You are our purpose.
Alan Williams
Peter Jeppson
Sandy Botkin
Contents
Foreword............................................................................................................ 7
Introduction:
Why You Should Read This Book ................................................................. 9
Part I:
The Money Mastery Principles..................................................................... 23
Chapter 1:
Money Is Emotional....................................................................................... 25
Chapter 2:
Track It! Control It!....................................................................................... 34
Chapter 3:
No Such Thing As “Savings”......................................................................... 46
Chapter 4:
Power Down Your Debt................................................................................ 60
Chapter 5:
Know the Rules of the Game........................................................................ 76
Chapter 6:
The Rules Are Always Changing.................................................................. 93
Chapter 7:
Look at the Big Picture................................................................................ 107
Chapter 8:
Organize Your Wealth................................................................................. 126
Chapter 9:
Understanding Taxation.............................................................................. 143
Chapter 10:
Put Your Money in Motion......................................................................... 162
Part II:
Tax Strategies............................................................................................... 177
Chapter 11
Why You Should Start a Home-Based Business ...................................... 179
Chapter 12
To Incorporate or Not ................................................................................. 189
Chapter 13
You’re in Business, So Act Like It!............................................................ 201
Chapter 14
Your Home Office: A Tax-Saving Resource............................................. 213
Chapter 15
Deducting Meals, Entertainment, Car, and Travel With Confidence.... 225
Chapter 16
Income Shifting: Tax Secret of the Wealthy.............................................. 261
In Conclusion................................................................................................ 277
Appendicies................................................................................................... 280
Notes .............................................................................................................. 289
Index .............................................................................................................. 301
About the Authors........................................................................................ 311
Foreword
Foreword
I
met Peter Jeppson and Alan Williams more than seven years ago when
they flew into Kansas City to discuss with National Seminars Group the
development of a Money Mastery audio cassette series and seminar. I
had reviewed the Money Mastery program, but only had talked to Peter
and Alan a few times before meeting them. Our previous conversations had
focused on the marketing potential of the program and they were now try-
ing to get me to understand why Money Mastery was different from all the
other boring budgeting systems on the market—systems that people don’t
use. I have to admit, I was a little skeptical about our ability to market an-
other “budgeting” program and their ability to deliver on their promises.
Boy, was I surprised when I finally learned what Money Mastery was all
about.
Money Mastery is not just another “budgeting” program. It shares fi-
nancial success secrets in such a powerful way that it can, and does, change
lives. If you will take the time to read this book and do what it says, it will
change your life. “More marketing hype,” you may be saying. . .well, read on
only if you want to be financially independent. Otherwise, close this book
and go buy a novel.
Here’s a sneak peak at some of Money Mastery’s secrets:
• Money budgeting has a reputation for being boring and tedious,
requiring you to do something about what you spent last month
after you’ve already spent it. With the Money Mastery system,
every time you spend a dime, you know exactly what you’ve
spent, where you’ve spent it, and how much you have left to
spend for the rest of the month. It’s not a system that makes you
7
Money Mastery
go back and look at the past—it helps you track instantly what
you’ve spent and gives you information about your life when
you need it. What is tracked is controlled, giving you immediate
decision-making ability. And Money Mastery will even show you
how to find a significant amount of money in what you now
think is a tight budget.
• Not only does Money Mastery teach you how to control your
spending, it teaches you how to eliminate your debt. Too good
to be true? With the “Power Down” approach, Money Mastery
will show you how to get rid of debt, including your mortgage,
in as little as nine years.
• Money Mastery also teaches you how to reduce your tax load.
The key to investment success is your net return after taxes. This
program can show you how to get the largest net return on all
the money that will become available to you through following
all the other Money Mastery techniques.
Before I met Peter and Alan and really understood the program, I felt
the way you might be feeling now: skeptical that it can really make a differ-
ence. But you see, we all have to break through old paradigms. I can tell you
that if you want to change your life, if you are tired of the status quo, if you
want a program that deals with your realities and your problems, then Money
Mastery is your ticket to financial success. I hope when you are done read-
ing this book and applying the principles found in it, you will write me and
tell me what it did for you. I would like to add your name to the list of
testimonials from people just like me who are living their lives in a much
more satisfying way because of Money Mastery.
—Gary Weinberg
Chief Operating Officer
Rockhurst University
Continuing Education Center, Inc.
8
Introduction: Why You Should Read This Book
Introduction
Why You Should
Read This Book
T
his book is unlike any other you’ll ever read about money and its
management. That’s because it isn’t really about money; it’s about
the emotional hold money has over you and how those emotions
affect how you spend, borrow, and save.
This book is also a message of hope. Its primary purpose is to help you
more deeply understand your emotional perceptions about money and to
give you a complete system for managing your personal finances that will
totally change your life. It can teach you how to:
• Get out of debt, including your mortgage, in nine years or less.
• Gain immediate control of your personal finances.
• Improve your relationship with your spouse and never argue
about money again.
• Understand how to legally pay up to 50 percent less taxes
every year.
• Save 10 percent of your gross income and be able to predict
how much money you will need to retire.
Within the pages of this book you will begin to learn a system that will
help you get on the road to personal financial freedom and greater self-
esteem. You will also be lead down an emotional path, one that will help
you more clearly see yourself and the way you look at money. Counter to
what you may have learned over the years:
Money is emotional, not mathematical.
In our seminars and coaching sessions, we ask people to respond to the fol-
lowing searching questions. Take a moment to note the answers for yourself:
9