What do you do if you are upside down on your property and the bank is running you around and around? You know…asking you to send in the same documents over and over again. Well you can do a Strategic Foreclosure.

What is a Strategic Foreclosure? Another word for tell the bank come get my property and you are tired of their crap. You have to take a step back first and decide where your moral compass sits. What is the right thing to do, make your payments, as promised? Sure financial responsibility is admirable, but it is hard to maintain that kind of thinking when the very financial institutions you owe money have little to NO financial responsibility. What happened to lead by example?

Hire an attorney and it will take one to three years for a foreclosure to happen.
Now think for a moment about your situation. If you do what all the big corporations do, you put business first. If that is the case, you may want to consider a business decision on your biggest investment, your home. I can better explain this with an example, which happens to be a real life example from someone I know.

Okay, you buy a modest home in 2006, 4 bedrooms two baths, two-car garage about 1600 square feet, relatively new. You pay $225,000.00 put in about $30,000.00 in upgrades. All of a sudden the market starts to pull back, and it did. Next thing you know you are paying way more than you can rent the property for, the house across the street just sold for $112,000 and there are ten more on the street for the same price. What do you do?

Well, you first try and call the bank to see if you can get approved for one of the many home mortgage modification plans. But you are not so lucky since you don’t meet any of the requirements, and it wasn’t from a lack of trying. You were told “sorry” so many times you quit counting. Now all of a sudden your job has reduced your hours and pay. You are lucky enough to still have a job but nonetheless, you are now struggling to make your mortgage payment. You decide enough is enough and can’t make your current mortgage payment. One month turns into three and so on. You are still trying hard to get a modification but to no avail.

Finally you are making headway with the bank and you believe you can see a light is at the end of the tunnel you think, the bank says “no problem, we will lower your payment and you can keep making payments on your original note.” WOW, thanks but no thanks, don’t do me any favors! But why say that?
Let’s look at why.

Even if they lowered your principal you are wasting your time as far as a business decision is concerned. The house is only worth what someone is willing to pay, and right now that’s $112,000.

So you walk away from this house, the one you owe $260,000 on. You live in it for say 3 years total before it is foreclosed on. Yes, your credit will be affected, you will have a foreclosure, along with about 50 percent of the other Americans out there that owned a home and experienced a foreclosure. But you are better off saving your money and renting at a price you can afford for the next few years. Get your feet back under you and then buy when the job and the housing market has improved a bit.

If you end up buying a home similar to yours, let’s say the one next door, for say $112,000 in the next five to seven year, it will probably be back to the levels you currently owe – $260,000.

So, a sound business decision encourages you to walk away, make a deal with bank, turn over the house and owe nothing. Save a little money, put down 20% on a new house in two years. Even if your credit is affected you can do a rent to own or a lease purchase. After 12 months of good payments, you can refinance it as your primary residence.

The $112,000 house you will buy for $120,000. You put down $10,000.00 and owe $110,000 over the next six years. Your house goes up in value to say $200,000 and your mortgage goes down to say $95,000.00 and you have $105,000.00 in equity. Meaning if you stayed in the old house that you owed $260,000, it is now worth $200,000.00 and your mortgage is down to $230,000.00 give or take. Which scenario, as a business decision, seems better, upside down or positive?

You have to weigh the pros and cons the decision to be moral and ethical make your payments or make a sound business decision and be ahead financially. Only you can make that decision. I will tell you that the banks and big companies make these decisions every day and they always choose the business decision. That’s not a reason to condone it, but a reason to seriously sit down and consider your choices.

One thing is for sure, the real estate market will come back, until then look for the opportunities they are always present.

I believe that one of the most important qualities that any of us can possess is integrity. Without an honest approach to life and to everyone we come into contact with, our lives are meaningless. Honesty and a sense of duty should be the number one issue in our daily lives and always remember to stand up for what you believe is the right thing, even if it’s not the popular thing to do.

You must always place other’s needs ahead of your own with a sense of unselfishness. Make certain that you, as the manager; never take advantage of any situation because you’re in charge. Never take credit for something that a subordinate has accomplished but always give credit where the credit is due. Those you are in charge of leading should never take a back seat based on your status as a manager/supervisor. As the Marine Corps states, be considerate of others.

Make sure that you get up every morning with a fair amount of enthusiasm and share it with the team. This can be translated as a positive attitude that creates a sincere interest in the performance of all your duties. If you show enthusiasm, others will soon do the same in accepting their own challenges within the organization. Smile, be understanding of others, enthusiastic about the job and willing to accept anything that is required of you and the team.

Also be as dependable as you possibly can to yourself and to others. If you are late to work, how can you expect others to make it there on time? Dependability also fosters a degree of trust among the staff members and develops an effort to try and attain the highest standards possible. Being dependable also means standing up for your actions and never making excuses. Get into the habit of successfully accomplishing a task whether you like it or agree with it. If required by the organization, do it to the best of your abilities.

The courage to do what isn’t popular or might be hazardous is something you’ll have to develop. It’s a very personal trait. Any bravery “under fire” (whether on the battlefield or in the boardroom) allows you to stay calm in situations that require you to remain under control. Your moral courage is also something that must never be neglected in order for you to develop the necessary strength to stand up for what is morally right. Your moral courage also forces you to accept fault when you are to blame. This is something that our drill instructor tried to instill in us right from the start by answering with the statement “No excuse, sir” when asked about our involvement in certain situations. Take the responsibility and the blame when required. It’s all about honor and making sure the team is never placed in jeopardy. Admit your mistake and move forward. It is that important.

Endurance is the final trait I want to share with you because it’s an extremely important quality to have, especially in today’s business world. When you feel like quitting, tell yourself to keep going. Understand internally that you have the ability to withstand the pain involved (whether physical, emotional, or financial), and can handle the stress, exhaustion and the hardships you’ll most likely endure.

If you simply decide to quit, then you will have achieved nothing. But if you hang in there and get the job done, even when you don’t think you can travel one step further, you will have succeeded.

It’s not easy but it is necessary, even expected, of today’s business leader. Your confidence will be observed by those around you and will become quite contagious. If the team moves in a positive direction, the entire organization will have a better chance of succeeding. That’s important in today’s challenging business environment.

In corporate America today, there is a desperate need to do more with less. The stress of trying to create a positive cash flow when sales are down might force you to develop an approach that has never been tried before. Don’t say it can’t be done – try it. You may be surprised at how innovative thinking suddenly develops when a positive attitude is created.

Another personality trait attained when you’re in a positive mental zone is confidence. Without the will and desire to accomplish even the smallest task, there’s really no point in getting up in the morning. Your optimistic approach to the job at hand will take you to the next level of accomplishment. Part of building a respectable level of confidence is developing and attaining a set of goals that you set out for yourself and your organization. Accomplish each goal, step by step, and your confidence will flourish. You’ll start believing you can do whatever you set your mind and heart to do.

Oh, and one other thing – love what you do. That’s extremely important because once you find that your life’s work is actually something you enjoy doing, you’ll want to do it more often. You’ll want to make sure it’s done competently and those around you will also start feeling the same way. It’s often been said that if you love what you do, you’ll never work another day in your life.

But many of us are trapped in positions and in companies that we don’t enjoy because of the current shape of the economy. What can you do if you find yourself in that situation? Maybe it’s time to get out and start searching for that one thing that you are passionate about. Time to start enjoying the day from sunrise to sunset. Let your passion drive you forward and find what it is that will create a solid, confident, and positive attitude within you. It’s in you right now; you just need to do some soul searching to find it.

Your attitude and the way you think are entirely under your personal control. A positive attitude will help you lead your team to victory. So, when you think about it, your future success, even your very health is something that you can control if you literally put your mind to it. Think positively.

Remember, you may be down but you’re certainly not out by a long shot. Time to start the rebuilding process and the sooner the better. The faster you start, the more time you’ll have to put away the cash, the assets, the peace of mind before you really need it. But what to do first?
You might look back and try to remember where you started when you first left home or when you first got married. Chances are you began by putting away what you could in a bank savings account. That is probably a good place to start now.

Recently an economist said that average U.S. household wealth is down almost 20 percent from its pre-recessionary financial crest three years ago. There has been no reduction of U.S. household wealth in the last 50 years that has even come close to touching this loss. Many of those who supposedly know (government officials, economists and the like) are starting to believe that the “Great Recession” has probably seen its worse and investors are beginning to get restless about standing on the sidelines. But, many more are not yet interested in getting back in yet. There are fears that they might run into a second phase of this recession period and take another big hit. And others are getting nervous about the possibility of losing out on something big when things do begin to look clearer economically.

So what should we do? The answer to that question is very personal – it’s your money and that means its entirely your decision. But let me just throw out a few facts that may help you make some very important decisions.

Many people I talk to are ready to jump back into stocks. The negative or positive activity experienced by the stock market is normally guided by the strength or the weakness of the U.S. economy. When our economy begins to expand and the chances of inflation are relatively slim, the stock markets tend to thrive. Today, I don’t think we know the answer to either of those questions because growth and inflationary questions remain persistent today.

I don’t know about you, but I’ve been hearing lots of advertisements about investing in commodities these days, specifically gold. During periods of inflationary pressure, the commodity sector has been where many people go to find a financial refuge. Although gold has been showing some considerable strength, it has also shown itself to be rather stagnant over the last few months – not gain or losing much in the process. The Fed has stated this year that if inflation begins to show itself while our national economy continues to be on the mend, they will pull back some of the liquidity they’ve put out there in order to slow it down. This will indeed have a great impact on commodity pricing.

So where to go? Back to that savings account at the bank that hardly pays anything as far as interest is concerned. Or maybe its time to remain on the sidelines and get involved in CD’s or other interest rate vehicles. While these types of investments aren’t very lucrative, you can be sure of one thing…you’re probably not going to lose in the process either.

Are you in a mood to take a chance or are you in preservation mode right now? Remember the old adage – “You pay your money and you take your chances.” But the chances we are experiencing today are not like anything this generation has ever seen. Getting back in or staying on the sidelines is a decision that each one of us must make independently and not by the flipping of a coin. Get educated and make sure the decision you ultimately make is one you can personally live whether your investments go up or whether they go down.

A while back I wrote an article that explained how I use a method to compartmentalize my own personal situations. In other words, I know that there are problems and situations that I must deal with at some point in my life, but that time might not come for another day or another month. I’ve taught myself to put those issues in the back of my mind – in a mental “compartment,” if you will – which allows me to deal with the most immediate situations first. Those issues that I have to concern myself with next week won’t be interfering with my current daily routine until the time comes to deal with them appropriately.

It’s not that I’m ignoring the problem; it’s more about postponing action until action is required. It takes time to master the knack of doing this but once you can control your thoughts a little better, you’ll notice that life won’t seem like an insurmountable task. Taking little chunks and handling each thing in a priority order certainly will help you develop a more positive attitude about your life.

Even before you get out of bed, stretch your body and your mind and prepare for the day ahead. Quote to yourself some positive affirmations knowing that if you think it, it will likely happen. If you get up in the morning with a negative mindset, your whole day will reflect that attitude. I guarantee it! Instead, get up with a positive thought, before a random life event takes hold of your daily routine. Things happen and most of how these events affect you is entirely the result of how you mentally handle and accept each situation that comes into your life.

It’s really very easy – if you think you CAN’T you will never accomplish anything. You remember as a child when you were first read the story of the “little engine that could.” The little train was chugging up the hill just saying to itself over and over – “I think I can, I think I can.” Well, it didn’t make any progress until it started telling itself– “I KNOW I CAN!” The moment you know you can you will help you begin to see how your mental state of being will always assist you in attaining the next goal, your next life objective.

Don’t get me wrong, I’ve had plenty of rough spots in my life and there were times when I felt the only thing to do was to give up. But someone gave me this same advice and I decided to try it. Once I could rearrange my thoughts from mostly negative to mostly positive, amazing things started happening to me. Those issues that I once thought were “mountains” that I could never climb suddenly flattened out and I could now run rather than limp through my life. I also found that there were quite a few people out there who were willing to help me overcome some of my challenges. In short, my life started changing for the best and I’ve never looked back.

Unexpected things in life will occur, anther great and logical reason to get your mind set on a more positive course now. If you have a stable mental process, when you hit one of life’s snags, you’ll be more likely to handle it more productively. Kind of like saving up financially for the proverbial “rainy day.” By preparing, whether mentally or financially, you’re ready for anything that might throw some problems your way.

So from this day forward, begin each new day by first taking positive control of your thought process. Don’t dwell on the bad stuff; instead think about the good things in your life a little more than you have been. Be thankful for your family and friends, your health, your experiences, and your dreams and you will soon find that your dreams will soon become the reality you’ve always hoped for. It happens – it’s happened to me.

The topic of money never remains fixed. Tax laws are always changing, and as we’ve seen recently, the laws pertaining to credit changed and were updated, plus there are always new and different investment opportunities that are developed and must be considered. These are just a few examples; I could list many more, but you get the point. Your financial education on the subject of money will never be finished so just adjust your thinking accordingly. One of the things I suggest is to spend some time researching financial papers and periodicals. So congratulations, if you are reading this, you have already started. Keep it up.

Additionally, there are lots of other methods in becoming a student of money. Many local community colleges offer courses in basic money management, which are normally taught by Certified Financial Planners and other similarly credentialed financial professionals. These classes can be an excellent resource for you. The only caution I’ll offer you about these courses is that sometimes the instructor may use the class as a platform to give out his opinions on how to invest, or even as a means of adding clients to his list of customers. So, you’ll want to pay close attention to the information, and be sure to “weed out” those bits of information that seem to be less than standardized financial knowledge and more financial propaganda or a sales pitch. Something to consider as your wealth builds, you will actually have to spend more time, not less, watching your money. Hey, this is a good problem to have, but it is an issue nevertheless.

You probably spent a lot of time and effort gathering the money you have available to you. So it goes without saying that you must watch out for the scam artists. We’re all familiar with these folks; people who just seem to represent the lowest echelon of human existence. And I’m not only speaking of hardened criminals, but people who live in such a way that their lives are centered on the acquisition of negative energy using risky tactics. Behavioral science has shown us that when honorable people are brought together with those who are less than admirable for an extended period of time, it is very likely that the decent folks will more than likely drop to the level of their counterparts than the other way around. There are a variety of theories as to why this is the case, but chief among them is that it simply requires less effort to fall down than to rise up. The activities in which the less honorable folks are frequently engaged are admittedly very appealing at an instinctive level. So just remember what you were told as a kid – “If it sounds too good to be true, it probably is.” Be careful!

One thing is for sure, it’s going to take a lot of hard work and self-control to build a solid financial future for you and your family. There’s not just one method of doing so but there are certain constants that apply to all of us. One of them is that you will have to commit yourself to getting the education you need and then taking the time to do so. Once you realize that there are hundreds of factors that must be studied, considered and applied every day, you will be well on your way. Start your research today. If there’s one thing that we all should have learned in the past couple of years, the financial stature of our lives depends on the decisions we make today. Poor choices create unfortunate situations when times get tough. Start creating an economically sound plan that will guide you to a more solid financial life for your future.

I think you’ll agree that filing your taxes is probably the most important personal and/or professional administrative function that you are tasked to complete each year. It’s very important that the finished product is as accurate and as honest as possible, so keep this in mind when selecting the person you’ll be trusting with your annual tax return. There is absolutely no guarantee that the tax professional you ultimately select will do everything he/she can to save you as much money as possible. So you need to follow a definite process when considering the choice of a preparer.

First, your tax expert will be handling your most personal financial information. You should be able to develop an open relationship relatively quickly where you feel comfortable asking and answering important financial questions. You should feel secure enough to ask the preparer how much he/she personally paid in taxes last year. If the answer is anything but virtually nothing, you will want to be cautious of this particular person. If this kind of candid discussion bothers you, at least ask for some solid references of satisfied clients. Another way to locate a skilled tax preparer is to just ask your friends and family; especially those you know make a considerable income. I’m certain they will be more than happy to recommend someone who has served them well in the past. Never lose sight of the actual reason you decided to use a professional tax preparer in the first place; to legally obtain a greater tax savings than you could on your own. The keyword there is legally.

When I talk to others around the country about their personal financial issues, I seem to end up disappointing them because I consistently come down against the use of any and all illegal tactics that might be used to reduce someone’s tax burden. In fact, I surprise most people because I normally take it one step further by avoiding even the use of what are commonly referred to as tax “loopholes,” the use of which are not, technically, illegal. The only type of tax reduction plans I support are those that use completely legal tax strategies. These strategies are primarily focused on maximizing the use of all available deductions which a U.S. taxpayer can use. Flat-out tax cheating, which normally comes in the form of absolute tax evasion or the claiming of false deductions, in addition to being wrong, is illegal, and will probably send you to jail, give you the opportunity to pay huge fines – or both.

So, I believe the use of permissible tax reduction strategies is the only way to go. There are many of them to take advantage of and they range from standard deductions for which nearly all taxpayers can qualify, to deductions for which small business owners can qualify. Discuss these deductable areas with your tax preparer and develop a solid tax plan that will legally qualify you to use these deductions. You must take the time to learn which deductions are potentially available to you and maintain the required records for every deduction so you can support their use should you be challenged by the IRS. If you do it correctly, you will soon see just how valuable the use of these eligible deductions can be. When it relates to your taxes, always take the “high road” and always be completely honest. Believe me, the effort is worth it.

The global economic situation turned from bad to worse during the past 18 months and it probably won’t get much better in the near term. You can be assured that unless you keep the proper attitude, plan for any possible financial downturn and create a solid set of goals for the coming year, you will be in a weaker position. I’ve seen some prognostications across the board that the typical American consumer will have to “tighten up the belt” just a little more in the coming months. Some retailers are saying that even if the customer has the wherewithal to pay for items, the chances of finding them might be hindered because many retailers are hesitant about holding a large inventory.

One thing is certain. It’s the American (and global) consumer that will ultimately bring us back to financial solvency but not until they are confident enough to start spending their hard earned dollars (yen, euro, or pounds) again. The current global economic downturn has really exposed the financial “underbelly” of many personal households. No family ever handles a job loss well, but the ones with enough cash on-hand and a well thought out emergency plan will be able to handle it better than ones that don’t have them. The strong economy of the past, fed by a number of factors including cheap credit, concealed the damaging decisions that many people made in their personal financial lives.

So, let’s say the economy begins to improve this year; you can be sure that the recovery process will take many more years to come. Let’s remember that there are 15 to 20 million Americans out of work and that number doesn’t seem to be getting any smaller as job openings haven’t increased either. The paradigm of how the consumer spends has definitely changed and isn’t likely to change back to the way it was before. Today the American consumer base is either trying to pay off their debt or, more likely, allowing their accounts to default because they can no longer afford to pay the bills without employment.

America’s small business has the biggest challenge ahead of them. It is small business that keeps most of America employed but in the current situation and under the current set of rules, expanding the workforce just isn’t very likely. Through all this, if your small business is still breathing (even if only shallow), start the new year by double checking your business plan and see if it’s still valid in today’s economic reality; some changes just might be necessary. This can be a great time for you to use your networking community to find the support and information you need to make the difference between success and failure; you might even consider a strategic partnership. People and business everywhere are trying to find better ways to stay afloat and your business just may be their answer. They need to know you’re there and advertising your service or product has never been more essential. If they don’t know you’re there then they won’t be able to find or use your business or service. That will certainly hurt your bottom line.

I am very optimistic about our country and the ability of its people to find solutions. Americans do their best in times of crisis and I see the nation finding the answers that will ultimately turn this situation around to the positive. It may take some time, but we can never give up or give in. What can you do? Get up every morning, become dedicated to your plan and never allow the situation to get the best of you. This will turn around eventually but it’s going to take some hard work and determination to create a solid economic base. Don’t be mislead, it’s going to take a lot of hard work but the sooner we start rebuilding our personal and professional economic foundations, the faster our lives will start to improve. Let’s get to work.

There are a number of ways to determine the best methods of handling money that didn’t exist even a decade ago. Today most of us have personal computers that can be used to assist your financial development. There are a number of software programs that can guide you by showing where your money is currently going. These programs can help you determine the best methods of using your cash to enhance your investments. Determine how much is coming in, how much is going out and establish where the money is going. It’s really that easy. Once you know those specific facts, you can make your adjustments.

One question you really should ask yourself is whether the investment techniques you have been using are actually working for you to build financial wealth for you and your family. If you’ve had problems, changes in the market trends, an alteration in your personal lifestyle (a new baby, a recent move, a new job, you’ve just married, etc.), then make the necessary changes to make sure your money is working to fit your life’s changes and goals. If interest rates are down, consider refinancing your home, if you can. Today, if you have good credit, interest rates are as low as this country has seen in more than a decade. Plus, make sure you build at least three to six months worth of living expenses just in case of an emergency, if you don’t already have that amount put away safely.

Other areas of interest to your personal financial life include insurance coverage. If your agent hasn’t called you recently, pick up the phone and request that you take an inventory of your coverage (home, life, auto) and adjust where needed. And for goodness sake, examine your credit report at least once a year. It might be a good idea to actually contact the credit agencies twice a year, especially if you are about to make a major purchase.

Just as you need to develop and then redevelop your short- and long-term personal goals throughout the year, so it goes with the state of your financial well-being. This should not be an unpleasant chore but rather something enjoyable. Remember, by conducting these occasional checkups, you are insuring that positive financial results are more likely to be attained than negative results.

As we’ve seen during the past year or so, anything can happen, which can force you off your fiscal course. Events that can make a difference in your life occur at a moment’s notice. Make sure that when unforeseen events occur, you make the needed corrections that will rebalance your financial life; plan to make a quick check every three months or so. This is all part of goal setting that I believe is so important to leading a balanced and prosperous life. Stay focused and make sure you perform your personal checkups on a regular basis.

If you wander through life with a negative approach to the situations you encounter, you’ll find it very difficult to find true success because your ability to network with people will be greatly diminished. I mean, who wants to associate with a negative person? The thoughts and emotions you generate each day not only influence you but they also affect those around you. Negativity is catching but so is being positive.

Goal setting within the corporate structure is more likely to be successful if the team is made up of positive thinkers. A positive work environment will outperform negative work environments and optimistic sales people always sell more than the pessimists. In today’s challenging business environment, it has never been more important to be as positive as possible. Many people equate optimistic thinking to visualization; an attitude that is conducive to growth rather than decline.

I’ve known many managers who believe they aren’t doing their job effectively unless the people they are charged with managing are “afraid” of them. Although, some people think positive people are “too nice” or as having no back bones, I have found that it is just the opposite. Positive people seem to know the true spirit of living in today’s world and how to treat the people around them; they know the true meaning of the proverbial Golden Rule – treat others as you would like to be treated.

A recent article in BusinessWeek magazine implored managers in the American business community to start being positive or risk the loss of their corporate direction. It discussed how it is the manager’s responsibility to positively encourage the team so they can “overcome the negative currents” of today’s challenging business environment. Because of the recession, more people are, of course, concerned about whether they will be able to keep their job and because of this dynamic, in many cases, their productivity has dropped off dramatically. It has never been more important for the leadership of American business to be as positive as possible. A positive team produces more efficiently and misses fewer days on the job. Face it, if you enjoy what you do, you’ll definitely want to do it more often.

Each day of our lives we are faced with situations that could be emotionally destructive and could generate negative feelings. Things such as a morning traffic jam or a flat tire might trigger negative emotions that can ruin the rest of your day. The trick is to distinguish between the major situations we all face in life versus the minor irritations and put them in the proper perspective so we can cope with them in a positive manner.

Positive thinkers tend to handle small and large problems fairly well while negative thinkers allow the small situations to adversely affect how they handle the more important events in life. Very rarely do we meet someone who is either all positive or all negative; there is some of each in all of us. But we sure can recognize the person who has persuasive tendencies in either direction. Some people are just more optimistic than others, and vice versa.

As a manager, you can start to improve and develop your team’s performance on the job by avoiding the dangers of negative thinking. It will help build an effective staff that will produce more and positively affect the overall job performance of your organization. Positive thinking has never been more important; begin moving in that direction today.