"Time is free, but it’s priceless. You can’t own it, but you can use it. You can’t keep it, but you can spend it. Once you’ve lost it you can never get it back."
– Harvey Mackay

I have an action item for you in a moment, but before I get there, allow me to explain…

You see, one of the projects toward which I devote my time during the summer, is expanding my financial intelligence. I’m not referring here to learning more technical moves, or adding more letters after my name.

I mean I want to learn how money works.

So, I’ve been going through this book: "How Rich People Think" by Steve Siebold, and it’s right on the money (yuk, yuk). For example, here are some traits his book identifies among the rich, as opposed to the middle class:

* Rich people focus on earning, not saving
* They understand that leverage creates wealth, not hard work
* See that they are in control of their wealth, not luck or fate
* Know that money is earned from focused thought, not hard labor
* Don’t see money with emotion, but with logic
* Are Action-Takers (as opposed to having a lottery mindset)

So why do I emphasize that last one? Simple — I’m suggesting you take an action now, which could have a big difference on your 2011 bottom line…

Enzo Paredes’s
"Real World" Personal Strategy
Halftime Adjustments
You know how good coaches are usually famous for making adjustments during halftime of big games? Well, here I am — acting as your financial coach in matters tax-related, and we’ve just about hit halftime for 2011.

You have six months of financial info to use for some quick math about your year as a whole, and to prepare for a pleasant upcoming tax season.

To begin, all you have to do is take your cash flow for the first half of the year, and multiply by two. Add up your wages, dividends, interest, and any other income, and then–if this represents approximately what you’re expecting for the second half of the year–double the sum.

Once you have your estimated 2011 income, give us a call (or send me an email), and we’ll help you determine the appropriate tax rate and deductions to apply. Because once you’re armed with this info, we can help you determine the amount of taxes you might expect to owe for 2011.

By then comparing this against your projected withholding, you can adjust the withholding on your paycheck in advance as needed, and ensure a happy visit to our office in the early winter.

This can also be a good time to organize your financial records and/or get started with some financial software. (Quicken, Microsoft Money, or the free online utility www.Mint.com are some popularly available options for this.) Getting organized now can make gathering a report of all those deductions a breeze come tax time!

To You and Your Family’s Peace of Mind!