Before Children: The Financial Implications & Considerations Of Children

By Staff

Congratulations again to Dr. John Beckem and his wife on the birth of their fourth baby!

In the video below, Personal Finance expert, Dr. John Beckem and social commentator, Nomalanga Mhlauli-Moses, discuss the important questions that must be asked and the conversations that couples need to have before they have children.

Dr. John Beckem is a Personal Finance Expert, Educator & Consultant.  He helps middle income individuals and families free themselves from debt and build generational wealth.

 

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Dr. John Beckem: Jill Scott’s Divorce After 15 Months Shows Need For Prenups

Jill Scott is getting divorced after just 15 months of marriage. The break down of any marriage is very sad and unfortunate, especially when the couple is not able to go through the process amicably.

Many media outlets report that Jill Scott is asking the courts to uphold the prenuptial agreement she and her husband entered into.

In the video below, Dr. John Beckem explains why he believes prenups are necessary and Social Commentator Nomalanga Mhlauli-Moses explains why she believes the exact opposite!

What do you think – are prenups the wise thing to do to mitigate risks or are they like starting marriage with a cloud of possible failure hanging over it?

Dr. Beckem: How Much Of Your Income Do You Keep?

Here is a quick way to keep an eye on how much of what you earn is actually not going right back out through spending:

Your total monthly income…………. A = $____
Less your total monthly income……B = $____
Difference is how much you keep…C = $____
Percentage of income you are keeping….C/A = $____

Recommendation:

• Start with 1% if necessary and increase the percentage of income you keep.

For more answers to your Personal Finance Questions,  please visit the Life After Debt Institute. 

Dr. John Beckem is a Personal Finance Expert, Educator & Consultant.  He helps middle income individuals and families free themselves from debt and build generational wealth.

Ask Dr. Beckem: How Much of My NET Income Should Housing Be Each Month?

In order to answer the question of how much of your NET income should go to Housing each month, first let’s list what falls under “housing”:

Mortgage payment………. $______
Rent payment……………… $______
Insurance (home)………… $______
Property taxes…………….. $______
Utilities……………………….. $______
Maintenance……………….. $______
Total $______

After you add up all housing costs, ask yourself:

•How much do you spend as a percentage of NET income?
Total / (NET income) = _____%

•Target: Keep housing costs under 33% of NET income!

For more answers to your Personal Finance Questions,  please visit the Life After Debt Institute. 

Dr. John Beckem is a Personal Finance Expert, Educator & Consultant.  He helps middle income individuals and families free themselves from debt and build generational wealth.

Before “I do”: The Personal Finance Questions You MUST Ask Before Marriage

By Staff

Marriage is supposed to be forever and yet divorce happens almost half the time, after a couple has promised to be together forever.

Unfortunately, while there are typically many layers of causes to the breakdown of the marriage, research has shown that many divorces are actually caused by money problems.

In the video below, Personal Finance expert, Dr. John Beckem and social commentator, Nomalanga Mhlauli-Moses, discuss the important questions that must be asked and the conversations that couples need to have before they get married.

Dr. John Beckem is a Personal Finance Expert, Educator & Consultant.  He helps middle income individuals and families free themselves from debt and build generational wealth.

Ask Dr. Beckem: How Do I Protect My Small Business From Copy-Cats?

Personal Finance expert, Dr. John Beckem answers a question submitted via social media:

Questions:

“Someone will come up with an idea of a small business, suddenly everyone in the village or town or city starts selling the same products or doing same business. Obviously the person who started this project will close down naturally-what solution will you provide?”

In the video below, Dr. Beckem answers the question and gives some tools and tips about how to establish and build a successful small business.

Dr. John Beckem is a Personal Finance Expert, Educator & Consultant.  He helps middle income individuals and families free themselves from debt and build generational wealth.

Finance Professor Predicts 2018 Financial Crisis- Here’s What You Need To Do

By Staff
Many finance experts called the 2008 financial crisis the worst economic disaster since the Great Depression of 1929.  Housing prices fell over 30% which was even worse than during the Depression and even two years after the recession ended, unemployment was still above 9 percent.

Currently, many people are still recovering from what came to be known as the Great Recession and yet, according to noted Finance Professor, Dr. John Beckem, yet another financial crisis is looming. That’s the bad news! The good news is that you can make some wise decisions that will help insulate you from the crisis.

In the video below, Dr. Beckem discusses the impending crisis with social commentator, Nomalanga Mhlauli-Moses. The finance expert shares some key steps to make sure that we are not negatively affected by the downturn in the economy.

Dr. John Beckem is a Personal Finance Expert, Educator & Consultant.  He helps middle income individuals and families free themselves from debt and build generational wealth.

Tamar Braxton & Vince Herbert Divorce: What Role Did Money Play?

By Staff Blogger

Money has been shown and proven over and over again to be the major contributor to divorce. It therefore follows that not being very mindful of how money is handled and perceived in a marriage is a sure way to cause marital troubles and, often times, even divorce!

The media has been buzzing about celebrity couple – singer  and songwriter Tamar Braxton and her manager and music executive husband Vince Herbert -who are reportedly getting divorced.

In the video below, Personal Finance expert Dr. John Beckem discusses this hot topic with social commentator Nomalanga Mhlauli-Moses.

Dr. John Beckem: Top Five Obstacles to Building Wealth

By Dr. John Beckem

1. LACK OF DISCIPLINE
– If you spend more than you earn, the math will never work.

2. POSSESSING MORE LIABILITIES THAN ASSETS
– Simply put, Assets put money in your pockets, Liabilities take money out of your pockets.

3. NEGLIGENCE AND LACK OF CARE FOR THINGS
– Constantly replacing items due to negligence and lack of care is like pouring water in a bucket with a whole in it. Everyone in the family must be on board with implementing behaviors that build wealth.

4. LACK OF FINANCIAL EDUCATION
– Personal Finance & how to build generational wealth is not taught in the K-12 or Secondary educational system. What is taught is Corporate Finance (how to manage your employers finances for the company). If you want to learn Personal Finance you must learn through publications, seminars, and mentors.

5. LACK OF KNOWLEDGE REGARDING TAXES
– The #1 expense for most people is taxes. In the U.S., there are four types of income which determine how much tax you pay.

a. Ordinary Earned Income (40%) – is what you earn when you work for an employer and trade your time for money. You receive a paycheck and pay approximately 40% of your gross income to taxes.

b. Self-employment Income (60%) – is the income you make working for yourself as a sole proprietor such as a lawyer, dentist, doctor, chiropractor, etc. You are your business. If you are suddenly hit by a bus, get sick or miss work, your income and business stop. Self-employed individuals generally must pay self-employment tax (SE tax) as well as income tax. Taxes for Self-employment Income are approximately 60%.

c. Business Income (20%) – is the income you receive from businesses in which you own an interest such as Partnerships , Limited-Partnerships, Corporations, or Limited Liability Companies. This is income you receive from your business working for you. It generates income whether you, as the owner, are there or not. Taxes for Business Income are approximately 20%.

d. Passive Income (0%) – is the Income you earn from an asset you own such as Real Estate Investments, Paper Assets, and Royalties. Taxes for Passive Income are approximately 0%.

Dr. John Beckem is a Personal Finance Expert, Educator & Consultant.  He helps middle income individuals and families free themselves from debt and build generational wealth.

Dr. Beckem: My Crazy SEARS Story & Why They’re Likely Going Out Of Business

By Dr. John Beckem

This past weekend, I had an unbelievable experience with the retail giant, Sears, with whom I have had a relationship for almost 25 years.

I genuinely believe that the way they mishandled my dealings with them this past weekend is a very big contributing factor when trying to understand why they are going out of business.

Companies that do not realize that their customers are the “lifeblood” of their business are making a very big mistake and in the worst case scenario, like Sears, pay a very heavy price for that.

In the video below, I explain the possible ways that an experience such as mine could actually have an impact on someone’s personal finances.