Free Financial Counseling

Free Financial Counseling. Why pay for expensive financial counseling when you can get it free? This is the most thorough Do-It-Yourself financial counseling guide I have come across. Expertly thought of by Robert Allen, this powerful guide will help you find the best solutions to your financial problems.

Three Steps to Solving Any Financial Problem

Step One. What do you want to accomplish?

Determine the exact source of the problem, or the exact financial goal you wish to accomplish.

How much yearly income do you want to be receiving within how long? Exactly what financial problems are you facing now? The first step in financial counseling is always to first understand the root of the problem. Only then can the problem be solved.

Step Two. List all your financial and non-financial resources

As Robert Allen notes, list your financial and non-financial resources according to these free financial counseling guidelines:

Financial Resources

  1. Cash and near cash – how much cash could you raise within thirty days without borrowing any money?
  2. Credit – How much cash can you borrow on a short-term basis? And on a long-term basis?
  3. Financial Statement – What is your net worth at present? How many ‘borrowable’ equities do you have?
  4. Cash flow – How much cash could you divert from your monthly income to apply toward your financial goal?

Nonfinancial Resources

  1. Time – how much time per week can you devote to accomplishing your financial goals?
  2. Knowledge – do you possess specialized knowledge needed for success in your chosen field of investment? Or do you know someone who already possesses this knowledge and can share it with you?
  3. People – Do you know the right people? Often, it is not actually about what you know, but rather who you know. If you are short of any financial or nonfinancial assets, do you know people who can provide them to you at a reasonable cost?
  4. Faith – Do you have the determination to persevere until you succeed?

Step Three. List the possible paths you can take to achieve your goal

Allen’s free financial counseling guidelines:

  • If you don’t have it, you can get it. Look for the book, website or person you need in order to get it.
  • Try to use your own cash last – this ensures that you are only investing your money in the best bargains.
  • Always borrow the cheapest money first – this means the money available at the lowest interest rates, and with the least hassle. As Allen notes, money has two basic costs: financial costs (interest rates and miscellaneous fees) and time costs (trouble needed to get the money)
  • Cheapest source of money: buying real estate with the seller carrying back part of his equity in the form of a mortgage or trust deed. You can also negotiate a highly competitive interest rate below market rates with a flexible seller, and do not need to go through any financial institution.

    More expensive sources: lending institutions, most expensive being equity partners (takes time to find willing ones, and you have to give up some of your ownership)

  • If you borrow against your equity, only borrow up to the amount with monthly payments you can afford to repay out of your present income.

Most importantly, start slow when using leverage. Get your wet first, then borrow more only when you know what you are doing. This helps you avoid the temptation of dumping big money into poor investments.

Finally, choose one path of action and go for it all the way

This free financial counseling guide truly puts you in the driver’s seat. Follow each step carefully and strive relentlessly toward your dream – even if you stumble along the way, you know that eventual success is the only possible outcome.

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