This New Year I believe will be one of reaping what one has sowed over the last several years. So if you have sowed well, nurtured and been patient expect good crops; if you have sowed complacency then that is what you will reap!  There has already been various warnings of more austerity and the degrading of a top world country; which has been shocking for many but brings into realisation that 2012 is going to be the year of economic reckoning.

I have been writing this blog now for two years and so am very in-tuned with what is going on around me re. the global economy, which is simply a cleansing. Too much debt and greed has piled on the pounds – so to speak – on the economy – globally and nationally – and now it is time to shed the weight, realign and get healthy. Which is one of the reasons I appreciate the value of Gold; first of all it is one of the oldest currencies in the world, has always retained its value; and finally it is a thermometer to how sick the economy. As such, gold may continue to fluctuate due to market, but it will continue to rise because the sickness in the economy still has some way to go before it gets healthy again.

It is for this reason that this Saturday I am holding an event on Gold with some of the UK’s top Gold speakers, including Minesh Bhindi of Gold for Life and Dominic Frisby, Commodities Commentator for MoneyWeek.com. It will be opportunity for those who want to know more about gold, purchase gold and profit from gold to come along and ask any questions they have ever had to the panellist. It is going to be a great day of learning!

www.youtube.com/watch?v=qP7ob6ydIJc

Prediction for 2012

Some people may feel my predictions are obvious but there is a saying which goes ‘to say you know but do nothing, is not to know’.  So without further ado here are my predictions for 2012.

1. The Euro in its current format will cease to exists
2. UK  economy will stagnate and there will be more big name high street closures
3. Unemployment will increase simply because of the lack of movement in the economy, creating a rise in entrepreneurs aka solo-prenuers.
4. The value of our fiat currencies will continue to decrease due to money printing and of course this will increases the cost of living.
5. There will be a number of defaults in the property market, globally and nationally
6. The UK GDP deficit will increase due to unemployment , thus less taxes coming in but more benefit payouts
7. Precious metals will increase in value
8. We are going to have a great Olympics!

For the last two years I have made it my mission to become financially savvy, to create my own personal economy but more importantly to read, acknowledge and understand why we are going through the world’s biggest financial crisis, and subsequent the greatest wealth transfer ever seen in history.  Will we survive it? Of course we will! But for some of us, we don’t want to just survive it but thrive in it because in every challenge there is an opportunity!  It is for this reason why most millionaires are created during a recession. And a recession is definitely what we are in.

So to end, there is a Proverbs quote that sums up quite aptly three categories of people ‘Some people make things happen, some watch things happen, while others wonder what has happened.”

Which category are you?

Until next time, to your financial success and becoming financially savvy

Butterfly Wealth Creation

Some people keep up to date on celebrity news, sports news, entertainment news and general news; I in contrary keep an eye on the economic news. Why, because in order to become financially savvy one must understand what plain one is working on. As the saying goes forewarned is forearmed.

In the last several weeks the headlines that have popped out at me are as follows –

• Hard times ahead for 3 more years (Daily Mail – 27.01.2011)
• Economic outlook is bleak indeed. We can put through but only if our leaders have courage enough to tell us the truth (Daily Mail – 27.01.2011)
• A fifth of university leavers are out of work (Daily Mail – 27.012011) – see my post on students and jobs here.
• Debt crisis could tear up Europe, says Soros (Daily Mail – 27.01.2011)
• Property – the Achilles heel of the financial system  (Financial Times – 27.01.2011)
• Young fret over money woes (The New York Times – 31.01.2011)
• Sudden uprising in Egypt unsettles global markets (The New York Times – 31.01.2011)
• Age of the part-timer: 200,000 jobs were created last year. Only 3 per cent were full-time (The Daily Mail – 01.02.2011)

It seems as if things are moving speedily towards the inevitable ‘economic cleansing’ which the world governments are trying to delay and glaze over with words of economic encouragement. The article, however, that touched me the most was the New York Times ‘Young fret over money woes’. The young being 7 years and plus. We sometimes forget that an economic down cline affects not only adults but children alike.  They worry about whether they will have to move and lose their friends, their parents arguing and whether they will become homeless.  The report goes on to explain that the emotional impact on these youngsters can range from self-harming (scratching) and bed wetting, as they have no one to talk to.

It is for this reason I encourage those reading this post (parents and none-parents) to take the time to seriously think about creating your own personal economy and starting your own (part-time) home-based business. There are so many options and opportunities out there; you could start a UK based home business as in Life UK Financial and CashbackCard.com – which is actually going global next month. Or a low cost global business such as Club Asteria.

Creating your own personal economy (business) is something I have written extensively about here on BecomingFinanciallySavvy. com.  You can review some of my post on this subject by search or simply scrolling through the posts.  In all sincerity the hardest part in becoming entrepreneurial is starting; something I recently wrote about here - http://butterflywealthcreation.com/getstarted

If you are unsure of what you want to do or the opportunities out there, then contact me at info@ButterflyWealthCreation.com to discuss. Remember we don’t know what we don’t know and Butterfly Wealth Creation is all about helping you to Create (wealth), Preserve it and Prosper.

In addition to the above, for those who have savings and are simply watching it erode, I encourage you to look at other alternatives to saving and protecting your money, especially for your retirement, and I suggest looking at gold. Contrary to what many think gold is not just for the rich and is affordable to the everyday Jane and Joe. Again, you don’t know what you don’t know!

KB Edelmetall , a 16 year old German company, created their now two year old gold business – KB Gold, of which I am an associate. Being a former insurance company, KB Edelmetall they could see what was happening in the global finance market and once their clients started enquiring about how and where to buy gold they decided to purchase their own gold mine and refinery.

KB Gold is now launching a brand new website which will give clients the ability to check their gold accounts and watch it grow, depending on the markets, which at the moment is all about gold (and silver). The gold bull-run which started 10 years ago is still going strong and will continue to do so as long as the world central banks keep printing money, which they are, and there is an excess of debt in the system, which there is. For a preview of the website and other features, go to http://www.kbvisionprelaunch.com/.

If what you see piques your interest and you believe that protecting your assets in gold (and silver) is the way to go, then please attended the gold webinar being hosted by my good friend and colleague, Jimmy Larsen from Denmark, on Tuesday  8th February at 8pm GMT – http://my.dimdim.com/goldfromkb.com

If you are unavailable at that time, no worries as there are previously recorded webinars you can watch or even attend the follow week, as they are weekly. In the meantime please also join my gold mailing list by clicking here.  If you are also entrepreneurial and understand the power of gold, especially at this present moment in time, then please review this link. It is FREE to become both a client and associate of KB Gold.

I hope to see you on the webinar…any questions then please contact me.

To your financial success

Butterfly Wealth Creation

Last month I wrote a post about the power of earning whilst giving - click here to view, and in that article I introduced a global membership organisation I belong to and feel very passionate about Club Asteria. 

Club Asteria purpose is to provide education, business opportunities and innovative programs to empower their members. Their mission is stated as follows :-

1.  We care and can help expatriates and immigrants to become more successful in their personal and professional lives and enable them to send money home to their loved ones

2. Through our philanthropic efforts we make an immediate difference for struggling individuals, families and communities by focusing on improving nutrition, housing, health care and education.

3. We promote entrepreneurship through the use of micro-financing and micro-credit to end the cycle of poverty that hundreds of millions of people from around the world are trapped in.

There are three levels of memberships – Free, Silver $9.95 a month and Gold $19.95. For further information on their membership click here.

Last month in my post I offered one lucky reader the opportunity to win one month’s gold membership; that winner is Ponnala Yadaiah from India.

Congratulations Ponnala. Glad to have you on my Club Asteria team!

To Your Success

Butterfly Wealth Creation

P.S.  I love to give, because in order to receive you have to be willing to give…it is a law, an energy; as such do subscribe to this blog as there will be more offers and competitions to come during the course of the year.

It’s the New Year, and this is my first post from Becoming Financially Savvy, the financial education and wealth creation blog of Butterfly Wealth Creation, for 2011. As such the subject of this article is very dear to my heart. Financial Equality!

Financial equality, in this context, refers to bringing financially stability to individuals from the poorest parts of the world, both here in the western world and developing countries. Financial freedom and financial education is a right for all, and it is amazing what one will do for it and what one can do with it, once they understand it, have it, and implement the core teachings of it.

We all know the world is much bigger than the EU, USA and UK and that although times are economically hard, globally, we have a lot more than most in other parts of the world, as such what are your thoughts on the following quote.

‘The purpose of wealth is to serve others’.

Doing what I do – promoting the importance of financial education and creating wealth – financial equality is very central to my belief that money is an energy and should be shared and used as a source of good throughout the world; as such this quote resonates deeply with me and for the last several months I have participated in a programme that promotes this, and that programme is called Club Asteria.

Financial equality is prevalent in the arena of micro-economics, alternatively referred to as microfinance, as well as micro-credit.  In MoneyWeek, the UK’s best selling finance magazine, they reported on this rising sector stating that it is an area that emerging markets have not yet tapped into, thus it is a good area to research as a potential revenue stream for investors and non investors, alike. For the full report click here.

The World Bank is a great promoter of micro-finance as it is the base root to helping developing countries grow; thus it is not surprising to know that the highly respected ex-finance director of The World Bank, Andrea Lucas, is head of the online organization, Club Asteria, which helps to create opportunities for individuals around the world to share in today’s wealth, in an ethical and transparent manner. This is an experienced woman who not only knows how money works and finance works but most importantly, for you and me, how compound interest works; and has applied it to the membership weekly commission program.

I have been with Club Asteria, as a gold member, for several months now and haven’t looked back! It is an organization for entrepreneurs and those interested in global social issues; immigrants or expatriates looking to save on money transfers; a motivated and ambitious individual from an underdeveloped region of the world; and those interested in benefitting from Club Asteria’s products and services, of which there are many.

Here, Andrea Lucas, MD of Club Asteria, speaks about the organisation: -

httpv://www.youtube.com/watch?v=vQWbw7dPuek

So How Do You Make Money with Club Asteria?

Well there are three memberships types:  Free, Silver and Gold. Silver membership is $10 and gold membership is $20 a month. For those more entrepreneurial there is also the option to become a network director and country wide network director.

When you pay your monthly membership fee you purchase points called Asterios and depending on how many points you have will determine how much commission you will receive as a paying member.  For further information on membership fees click here and weekly commission structure click here and download the Excel sheet, from there you will see how with the use of compound interest your asterios (points) will increase, thus your commission, also, up to a maximum of 10% weekly.

In addition to consistently receiving my weekly membership commissions  from Club Asteria, one of the things I am proud to say I have contributed towards via the organisation is in the providing of necessary nutritious food to many needy communities and making clean drinking water available by digging deep wells.  These projects are only the beginning of what Club Asteria can and will accomplish in providing life’s most basic needs to those most in need.

As well as the above Club Asteria has helped many individuals around the world to increase their income and improve their lifestyle. To view the 100’s of testimonials please click here.

The focus and generosity of Club Asteria cannot be questioned; as such I have a huge amount of respect for them to the point that I am offering one lucky reader the opportunity to have their first month refunded as a gold member.  To enter this competition please do the following:

1. Click here and sign up as a FREE member in the first instance

2. Fill in all your required details and then upgrade to gold membership ($20) via Paypal or AlertPay. (If you do not have a credit/debit card you can order a CashX card for $5 from Club Asteria)

3.  Then at the end of the month – Monday January 31^st I will pick one lucky winner whose 1^st month gold membership fee will be refunded to them.  An email will be sent out stating the winner as well as stated here at http://BecomingFinanciallySavvy.com

This is a serious business, so again, please only sign up if you understand and believe in the premise of Club Asteria.

For further information on Club Asteria please go http://BWC-ClubAsteria.info . And for those who are on Facebook please do join the Club Asteria group – http://www.facebook.com/TheClubAsteria, as well as follow them on Twitter –  http://twitter.com/#!/theclubasteria

So, to end, what will you do with your weekly club commissions? Buy more Asterioss (points)? Help others to get started with CA? Invest it in your business? Or even use it to buy gold?

Here’s to becoming financially savvy and financial equality for all!

To your financial success,

Butterfly Wealth Creation

P.s. If you like this post then please show it some love and share it, comment on it and subscribe to my blog! Thank you!

Continuing the Wealth Creation series that I started several months back, this post will be reviewing Property as a wealth creation vehicle.

Property, during the last ten years up to 2008, was the ‘golden goose’ of the UK. In that time, and off the back of the plethora of property programmes such as ‘A Place in the Sun’, Location, Location, Location, Grand Design, etc, etc, etc; many individuals became well off, some made a fortune and others became millionaires – the property entrepreneur and Secret Millionaire participant, Kevin Green comes to mind.

Saying that, and due to the credit crunch, it has also ‘broken’ a number of people financially!  So is property still a good vehicle for an individual to create wealth? I say yes!  But with anything there is a time for everything, so although it is no longer the golden goose of the UK, for some the goose is still laying eggs.

And one such person is the former actor and now property entrepreneur, Richard Shepherd, from Lease Option Mastery. In our interview he touches on some of the current property strategies sweeping the UK such as ‘Lease Options’, the traditional BMV, and finally Tax Liens. The interview is some months old but still very relevant to the property market today! So enjoy!!

40 minute interview with Richard Shepherd of Lease Option Mastery

To download your FREE copy of the 5 Lease Option PowerPlays as well as find out…
- How to know when exactly to use each one;
- How to source deals without the need for a deposit, mortgage or any kind of credit check;
- How to find tenants/buyers FAST – so you can get immediate positive cashflow;
- And they’ve even included example “Heads of Terms” for each strategy drawn up by a legal expert.
Then please go to – http://www.leaseoptionpowerplays.com/premanual.html

For further information on Lease Option Mastery and Richard Shepherd please go to the company Facebook group – http://www.facebook.com/leaseoptions, where I am sure he will be happy to answer any questions you may have in regards to his interview.

On a personal note, I am presently not creating wealth from property but instead gold! If you are unsure about how to invest in property or don’t have the funds to lose in the property market then gold is an alternative place to put your money, especially as it is both a protection and growth mechanism. You can then buy property with your increased gold later. One could look at this as a ‘delayed’ property strategy.

It is something to think about as property prices fall and gold rises! So why not buy gold now and then use it to buy property at a later date?  During the hyperinflation years of Germany (click here for details) this is what many did and made a fortune by doing so.  For further information on purchasing Gold please click here, as well as review the Money Week article entitled ‘What the price of gold reveals about UK house prices.’

Ultimately, many entrepreneurs in my network are applying various property strategies and techniques outside of the norm to make this particular wealth creation vehicle work for them.  ‘Different strokes for different folks’ as the saying goes! So if you feel you can do the same, by working with those who know what they are doing, like Richard and his team, then this is a great vehicle for you to also create wealth.

Two interesting articles regarding the UK Property Market:

http://www.propertywire.com/news/europe/-uk-real-estate-outlook-201011264722.html

http://www.moneyweek.com/investments/property/moneyweek-roundtable-what-next-for-property-prices-50727.aspx

International Properties

If you are interested in international properties here are several that have come to mind. If they pique your interest then please ensure you carry out your own due diligence.

Caribbean: The beguiling islands of the Caribbean continue to entice and spoil the 100 million tourists who visit every year, so why not do as many savvy investors are doing and invest in a property or apartment within a luxury hotel resort in the Caribbean? http://www.magnate-property-enterprises.co.uk/ Next webinar: 25 Jan 2011 – www.tuesdaywebevent.com

Albania: An emerging European state with a lot of potential for those experienced in these markets – http://www.albaniapropertygroup.com/en/

Cadiz, Spain: A special place in southern Spain which is a beautiful to not only live but holiday – http://www.sierra-cadiz-homes.com/

Barcelona, Spain: A very popular and vibrant city which I regard as my adoptive city after living there for 4 years…Viva Barcelona!  – http://www.bcnhousing.es

Finally if you want to become more financially savvy in property there are a plethora of information offline and online on property and how to make it work for you.  Numerous events as well! I have listed a number below!

UK Property Resources

Rich Dad,Poor Dad Property events: Dec 11 – 18 and then continuously throughout the year.

Social Housing Expert

Tax Liens

Your Property Network

London Property Mingle

The London Property Network

Women in Wealth

Property Investor Network

Property Berkshire Meet

To Your Success and Becoming Financially Savvy!

Butterfly Wealth

P.S. If you like this post, then please comment, subscribe (to the left of the page) and share by clicking on the buttons below! Remember ‘Sharing is Wealthy!’

Not so long ago I wrote a blog piece on young people and the education system entitled ‘It’s Not So NEET To Be A NEET!’, and I thought I would address the subject again but from the point of view of young graduates rather than NEETS. I do this because today my younger sister graduates from university, who as you can imagine I am very proud of!

Unlike so many others she is working, not in the field of her degree, but it is a job and it pays well! For many however, they are stuck with a huge university debt and a paying job, if a job at all. The competition for jobs, much less graduate jobs are extremely high.

The education system can no longer guarantee returns (well paying jobs) for investment as the world as we know has changed. As Robert Kiyosaki, author of Rich Dad, Poor Dad, says if are you are relying on the old way of doing things, go to school, get an education, get a good job with a pension and retire, then you will become obsolete. That equation no longer exists.

Due to national and global economies indulging themselves on a credit boom that has now burst, the upcoming generations of workers are going to be paying off our debts via taxs, NI, VAT for the foreseeable and long term future. So what is the answer to those looking to get off the starting line for the rat race? The answer is entrepreneurship! There are so many ways of being your own boss – from starting a business online or offline – be it internet marketing, affiliate marketing, or even network marketing. We have moved from the ‘industrialised age’ to that of the ‘age of the entrepreneur’, and as such, it should be embraced. Fully!

A J.O.B (Just Over Broke) is a great place to train, get experience and build networks but whether you are working a job or not your aim should always be to create your own personal economy.

Have you ever watch The Junior Apprentice? Inspiring!  Talking of which below is video of a young valedictorian giving an unconventional and uncomfortable speech, for many, regarding the education system; I would love to hear your thoughts on it.

So to end, I ask Graduates will you be one of our future Key People of Influence? If so how? What is your vision? What legacy would you like to leave for future generations to come? What difference do you want to make in the world? When pondering these questions remember this great quote from the great motivational speaker, Jim Rohn -

“Formal education will make you a living; self-education will make you a fortune.”

So, to all the graduates of 2010 – Congratulations & To Your Future Success!

Butterfly Wealth Creation

Let me ask you, when you think about becoming debt free and financially independent what do think about and what do you tell yourself? Do you tell yourself that it will never happen for you, or that it is too hard to do; or that it doesn’t happen to people like YOU? Or do you tell yourself that you deserve to be rich because you will add value to other people’s lives; or that someone like you can be rich; or that you can be rich doing what you love? What is your attitude to wealth?  And what negative or positive connotations do you associate with it?

T. Harv Eker, author of the New York bestselling ‘Secrets of the Millionaire Mind: Mastering the Inner Game of Wealth’ says –

“There is a secret psychology to money. Most people don’t know about it, that’s why most people never become financially successful. A lack of money is not the problem, it is merely a symptom of what’s going on inside you…”

Becoming Financially Savvy is a blog not simply about showing you why you need to or how to become financially savvy but also to challenge the way you think about money and your relationship with it, so that you can ‘up’ your game and make more money.

To do this it all comes down to your mindset; a subject I have touched upon a number of times in other posts published here, on BecomingFinanciallySavvy.com. How you think about money is how it will manifest in your life, thus you have to develop and challenge your mindset regarding money. Do you have an abundant, opportunity orientated mindset or a poverty mindset?

Further to his quote above, watch T. Harv Eker speak about this in the video below.

I attended his event earlier this year (see pic) and I took away a magnitude of great learning, however two keys things really stuck with me:

1. If you don’t learn how to manage your money you will never have enough money to manage;
2. Financially speaking, broke people believe the primary reason to work is to earn money to pay for their current lifestyle/situation. Whilst rich people believe the primary reason to work is to earn money to invest and create passive income structures, so that they can win the money game and become financially free.

My focus is all about investing and making my money work hard for me in order to become financially free. What about you? Remember, it is not a question of how much you have but what you choose do with what you have!!

I thoroughly recommend attending the next London Millionaire Mindset Intensive event, which will probably be early next year.  In the meantime you can download his book for free by clicking on the book title stated above and get familiar with his concepts and theories.  As the saying goes learning is earning!

To end, your mindset is detrimentally, especially in these unprecedented economic times, in determining whether you will simple survive or live. The world we exist in is dramatically changing, even down to money, as we know it. The value of paper based money – the euro, pound, yen, dollar, etc, is decreasing fast, whilst ‘real’ money – Gold (and silver) is increasing rapidly. Is your mind open to understanding what money really is? Could Gold become the new global currency? Are you willing to accept or even be open to this concept? There are already calls for money to return to the Gold Standard (where ‘fait’ currency is once again backed by gold) but the reality is that the current global deficit is too forgone for that to happen. So, what is the alternative? Mike Maloney, renowned Gold and Silver expert, gives his view in the video below.

At the present moment there is only one company I know of that is implementing a vision similar to what Mike suggests as an alternative and that is KB Gold. I will be hosting a webinar on this company tomorrow – Wednesday 13^th October at 2:30pm GMT and 8pm GMT. The link to join is –https://my.dimdim.com/butterflywealthcreation.

For further information on KB Gold and to join my Gold mailing list please click here.

To Your Financial Success & Becoming Financially Savvy!

Butterfly Wealth Creation

P.S. If you like please share, add a comment and subscribe to my blog!

There is a saying which goes ‘you need to know where you’re coming  from in order to know where you’re going.’ To a certain extent this is true! We are, after all, a product of our upbringing and conditioning, and then as we become adults, our social circles and peers.  It is these influences that ultimately guide our decision making and choices.  And as such, if you are really serious about your financial future and becoming (more) financially savvy, then it is vital that you do the following; -

1. Surround yourself with likeminded individuals who want what you want and are willing and able to guide you on your way, as you to them and others, also;

2. Acquaint yourself with up-to-date and current news on the economy – see the resource list at the end of this article!

3. Take the time to understand why we are in the economic mess that we are; i.e. understand where it came from in order to have a better awareness and opinion of where it is going.

By doing so, you are embracing the true essence of financial education; and not the ‘what is a cheque book, direct debit ‘type, but the ‘what is the rule of 21; what is an asset, a liability; what is the difference between a passive, leverage, residual or linear income?’ type. Financial education is something that should be taught at school but unfortunately it is not, which is why it is one of the key premises of my organization Butterfly Wealth Creation. 

By financially educating yourself and applying the learning to your life not only do you make better choices with your money, in respect to how to invest it, where to invest it, so that essentially you can make YOUR money work harder for YOU, rather than YOU simply work hard for it; but it also allows you to see opportunities where others only see F.E.A.R (False Evidence Appearing Real) and challenges. This is key to creating wealth as well as protecting it from ANY and ALL global, national and local economic instability.

And lets us not delude ourselves to say that the economic downturn has passed. We only have to read the national and global headlines to know that there is a very real possibility that we could experience a double dip – i.e. another, but longer and deeper, recession. I touch upon this topic in two of my previous blog posts Green Shoots…What Green Shoots?! and And So, The Budget Cuts Begin…

So How Did We Get Here And How Can You Protect Yourself?

The general and accepted consensus is that our global economic downturn was born from the American sub-primed loans crisis. These sub-prime loans were essentially toxic debt repackaged with non-toxic debt, then sold onto other financial institutions in an incestuous fashion.  When individuals could not pay their mortgages the market retracted on its orgy of debt and reckless borrowing, which was when the  global recession kicked in, bringing to mind the adage of ‘when America sneezes the rest of the world catches its cold’. However, the true reality is that the above scenario was just the ‘effect’ or even the ‘consequence’ of other far reaching historical events, rather than the reason.

Last month I attended The National Achievers Congress where Robert Kiyosaki and Kim Kioysaki, and their team of Rich Dad advisors appeared, educating and sharing with us their stories and experiences in order to propel and motivate us on our success journey to debt freedom and financial independence. It was excellent to say the least, and I came out of there with a mission to help others and a determination to live my own life ON PURPOSE, just as Robert Kiyosaki has and continues to do, irrelevant of what the economy does or doesn’t do!

One of the advisors, an economist  - Richard Duncan, author of The Corruption of Capitalism and The Dollar Crisis – was phenomenal and explained the history behind the ‘credit crunch’ with such simplicity and clarity, it was easy to understand, as well as riveting to listen to. He explained that in 1971, the US President of that time, Richard Nixon, withdrew the US dollar from the Gold Standard due to debts created by the Vietnam War and other issues, as well to fund their mission to send the first man to the moon – which to their credit they did do! However, in doing so, the US Dollar was no longer backed by gold and in turn this became the modern source of monetary volatility and consequently unregulated financialization.  That volatility necessitated the rise of risk-hedging financial instruments, such as derivatives (including credit default swaps such as subprime loans). Thus as the value of the dollar was no longer based on gold, it became based instead on projected future value.  This type of money is called ‘fiat money’, sounds very similar to fake money! Which Tim Barello highlights in his blog post ‘Grand Theft Economics’

“…Virtually every industrialized nation on this planet employs what are known as fiat currencies, or money systems that are backed by nothing other than the word of the respective bank and/or government of issue. While politically convenient, such arrangements are nonetheless hazardous, as they allow bankers and governments to effectively create money out of thin air; by doing so, nations have spent well beyond their means, while fraudulently conveying that their worthless pieces of paper hold monetary value.

When juxtaposed against the greatest financial crisis of our era, these revelations also shed light on the mother of all frauds against the US Constitution, and furthermore, the nation for which it stands.”

Richard Duncan goes on to further explain that because the world’s currency is no longer backed by any type of monetary value, the financial institutions are able to employ a duplicitous  method to create money from thin air which is called ‘Fractional Reserve Banking’, This in and of itself is not a necessarily the problem, but  the amount in which they have steadily increased the ratio due to our money no longer being backed by any real value. Please review the videos in my previous blog post Green Shoots…What Green Shoots?! for further information on this.

Inside the world of regulated banking this process is described as ‘expanding the money supply ‘, outside of it ‘inflationary counterfeit-pyramiding’. Thus, when a central bank (Bank of England for example) wants to inject more money into the Markets, officially known as quantative easing, they use this process – create money from thin air to do so. All in all what you need to understand is that the ‘tender’ we hold in our hands no longer represent monetary value but DEBT!!! And because our central banks can print money as and when they like, the value of our ‘fait money’ dwindles due to inflation. Sadly it is the savers who suffer the most because of this. As a saver, not only does the  bank use your ‘fiat’ money to borrow against with better returns for themselves, they also create more of it dulling the spending power of your savings, whist you only receive a paltry interest rate on it, whilst essentially ‘parking’ your money in their bank.  This is what is called going ‘broke safely’ and what Robert Kiyosaki says is a direct result of our lack of financial education. He writes “Without financial education, your money flows to those who profit most from your financial ignorance.”

This process the world Central Banks uses to ‘create money’ is aligned to debt…too much debt, thus the process was, and still is unsustainable, bubbles were created, which is what incurred the recession and when the bubble popped the consequence of that fell at the feet of the taxpayers; and will continue to do so for some time to come. And who are the main group of taxpayers in a country?  Employees and self-employed individuals aka the average Jane and Joe, conditioned by society to go to school, get a formal education in order to get a J.O.B (just over broke), buy a house, pay into a pension/savers account and retire happily ever after! Tell me, how is that working for you? If not great, then hear me when I say the old rules of money are broken! YOU have to create your own personal economy rather than simply rely on the one the State provides.

 Watch Richard Duncan talk about Why the UK’s Ponzi economy is vulnerable to a fiscal crisis.

So now you know the real reason for the recession and why there is a real possibility of a double dip; how do you protect yourself from the continuous deterioration of the value of your fait money; as well as increasing the value of your money? Obvious really! GOLD! This is what the governments used before, so why not YOU?

You only have to watch the numerous TV adverts to see how companies are desperate to buy your gold. I won’t go into the all the reasons why gold is great way to grow and protect your money, and this is not about putting all your assets/money in one basket but solely the recommended amount of 5% – 20%. What I will say, however, is that the value of gold is ever increasing (even though like any item/commodity there are always fluctuations) and I believe it will continue to do so. Why, because there is a trillion dollar amount of debt from emerging markets chasing a billion dollar market of gold, thus gold is a required and wanted commodity in the world today.

So how do you get involved in this market? Well what if I told you your local bank was offering a free service to exchange your money into a gold savings plan starting at E50, would you do it? Would you at a minimum go and find out more about it?  Well, unfortunately your bank can not offer this type of service to you because they do not have the means to, i.e. mines, refinery, production line with no middle men to pay a fee too.  There is a company, however, based in German called KB Kapital & Business. It is 16 years old, and enables YOU to do the above, because they own their own mine, refinery and production line, with no middle men to pay a fee to. As such their margins are low and therefore the FULL exchange of your paper based money into gold from the daily markets is passed totally onto you.  The product is gold – real gold, not coins, or jewellery. And again, their service is a gold savings plan, which if deposited into monthly will counter again the influctutations of the gold market.  KB Kapital & Business is endorsed by the Bund der Sparer, the German equivalent of the FSA, as well as is associated with PriceWaterhouseCooper in regards to its payments system. In its two years since inception the programme has proved a great success in Germany, Holland and other Nordic countries with a number of News appearances by the CEO Mike Koschine. They are now branching out into the rest of Europe and the world, but specifically the UK and USA.

Now, I am no financial advisor (you don’t need to be to talk about gold) or economist but I do know an opportunity when I see one, and this is definitely an opportunity! Even so, you should always do your own due diligence and you can start doing so by attending a webinar tonight given by one of the first pioneers of the company and now, also, one of the top earners of the business, Dennis Nowak, a native of Germany every Wednesday at  at 8pm GMT/9pm CET – please sign up here for access details. 

There is a also another webinar every Fridays at 8pm GMT/9pm CET, as well as others which will be scheduled periodically during the day. Again, for updated information on KB Gold and scheduled informational/training webinars please go here and sign up to the mailing list. 

Other Websites:  http://kbvision.wordpress.com  and http://www.mykbgold.com

KB is offering a service – a Gold Savings Plan –  for EVERYONE and to ANYONE from around the world, as gold is the currency of The World, so why not save in it?

Finally, on the subject of gold do you remember the cartoon ‘The Mysterious City of Gold’? If you do and are anything like me then this clip will definitely bring a smile to your lips! By investing in gold, in either a measured and affordable way, or in bulk, this smile could turn into a laugh…that is you laughing all the way to the bank!

Resources for Your Financial Education

The Corruption of Capitalism by Richard Duncan

The Dollar Crisis by Richard Duncan

Rich Dad Poor Dad by Robert Kiyosaki

Other Business and Economic Books

Green Shoots…What Green Shoots?!

And So, The Budget Cuts Begin…

Money Week

Love Money

Motely Fool

To Your Success and Becoming Financially Savvy

Butterfly Wealth Creation

P.S. I just received my first packagewith KB Gold and it is really does bring a smile to your face!

P.P.S. If you like what you have  read/learned please comment, share by clicking on the buttons below and subscribe by filling in the form to the right of this page. Remember, sharing is wealthy!

Anyone for a financial MOT?

Irrelevant of any economic season, good or bad, it is always healthy to have a MOT on one’s finances. We do one for our body, for our car, so why not one for our money?  It all makes for a financially savvy and sound foundation in which to grow and create one’s wealth, as in a garden of fruitful produce.

Thus, I am pleased to introduce to Becoming Financially Savvy readers and subscribers, Life UK Financial, a new UK financial service, launched in January this year,  that offers a unique FREE membership in order to provide YOU with a smarter and more convenient way of seeking FREE financial advice, manage your finances and purchase all the products and services you already buy such as insurance, mortgages, loans, wills, investments, pensions, tax planning etc, from their panel of FSA registered key advisors.

They have recently introduced a new product called Financial Health Check, which is a bespoke service to enable you, with minimum effort and fuss, to have a FULL financial review from their FSA registered Key Partner Advisers for the introductory price of £29.99!!

How Does It Work?

1. Request the Financial Health Check Service through the website or via our customer service team on 0845 680 9746.
2. LIFE UK Financial sends you the customer pack and letter explaining the few simple steps that you need to take.
3. Send back the completed pack to LIFE UK Financial in the Special Delivery Envelope provided
4. We collate and organise your paperwork and if requested upload documentation to your digital filing cabinet and populate your financial profile (coming soon). We then communicate organise our KPA’s to review and provide recommendations and advise on your arrangements.
5. We file and send back via special delivery to you your completed Folder with all your documentation filed for your reference and enclose your Financial Health Check report.
6. The Result : You are now completely organised and up to date and had a full financial review from our Key Partner Specialists outlining opportunities to save money or improve your current arrangements and identify any areas that require your immediate attention.
7. Estimated worth of this service is £200 – £600*.

*Estimated worth based on Independent Financial Advisers charge of £200 per hour and any accountants advice required.  Offer Ends 31/07/2010 standard price will then be £49.99

For further information on Financial Life UK, their FREE Membership and their Financial Health Check Offer, go to http://www.BWC-LifeUKFinancial.co.uk as well as contact me. I am always happy to help!

To Your Success & Becoming Financially Savvy

Butterfly Wealth Creation

P.S. Please note, and in order to be transparent, I am an independent Business Associate of  Life UK Financial. And as the video above touches upon, there is a sound business opportunity available to those interested in creating another source of income! If interested in further information then please send an email to info@butterflywealthcreation.com

It is the dawning of a new day, and the new World Cup winner has been exalted to the world: Espana! Congratulations to them, for not only are they World champions but European champions; quite an accomplishment by any means!

I mention this because many times when we watch athletes and performers we forget about the ‘business’ aspect of their field. FIFA is the governing body of football but it is also a business; the same as the Olympics, which is why countries clamour to be representatives of these types of Games.  They generate business for the host country, via tourism, construction marketing, and other industries.  Without the element of ‘business’ there is no real income, no revenue, no money, just ‘show’ and to ‘show’ cost money.

So in continuing the Becoming Financially Savvy ‘Wealth Creation’ series, today’s focus is ‘Business’.

“Business, more than any other occupation, is a continual dealing with the future; it is a continual calculation, an instinctive exercise in foresight.”
Henry R. Luce

There are so many types of business to start-up in but ultimately, as with anything, it is about starting. Robert Kiyosaki, author to Rich Dad, Poor Dad, believes that if you want to create wealth, and increase your cashflow, you don’t change jobs but change quadrants. That being from the E (Employee) and/or S (Self Employed/Specialist) quadrant to the B (Business owner) and/or I (Investor) quadrant.  For further information on this read my blog post – Cashflow Quadrant.

This idea is reinforced by the fact that everyone on TheTimes Rich List are all business owners rather than employees or self-employed individuals. Thus, the point here is that business is a vehicle to getting out of the rat race, working for yourself, within a team of other like minded individuals, in order to create wealth. Like anything worth having, it is not easy but a rewarding path to take. I touch on this in my post the Rise of the Entrepreneurial Nation.

In the attached audio I interview the experienced Mr Ryan Pinnick on starting your own business and the outlook of business in the UK today.

(38 mins)

Ryan started his first business in 2006 investing in property and is now a serial entrepreneur with a number of business interests in Property, Digital Media, Social Networking, Business Development and Global e-Learning.  As a result of his successes and passion to inspire people, Ryan is fast becoming one of the UK’s most sought after speakers presenting on entrepreneurship, wealth creation and personal development. He is also one of the key trainers for Business Success System  - a programme which provides you with all the components required to create your own wheel of business success – and ‘turnover’ in financial terms.

For further information on the FREE Business Success System Workshop, Ryan mentions in his interview and which are taking place THIS WEEK – Tuesday 13^th July – Saturday 17^th July, call 0800 044 5824 or go to http://biz-success-system.co.uk.  Ref: Butterfly.

Times are 12:30pm OR 6:30pm, so lots of choices to attend and start YOUR entrepreneurial journey. Remember you don’t have to be great to start but you do have to start to be great!

Other Business Resources

Business books from Butterfly Wealth Creation E-Store

‘Women in Business’ blog post

British Business Angels Association

Business Networking International  

Business Giants Network

Meet N Link

The Yes Group

Start-Ups

Entrepreneur Magazine

Business Link (please note due to government cuts, Business Link is being phased out.)

Innovate London

Ecademy

Linkedin

To Your Success & Becoming Financially Savvy

Butterfly Wealth Creation

P.S. Please forgive the abrupt ending of the audio interview. Technology is great but at times it does have its moments! J

P.P.S. If you are looking for a business opportunity please send an email to info@ButterflyWealthCreation.com I am sure I will be able to help you or at least point you in the right direction!

Finally, if you like this post then please comment, share and subscribe to Becoming Financially Savvy here, by completing the form on the right, as well as on facebook. The group link is on my profile wall – http://www.facebook.com/lavinia.d.osbourne