The Prosperity Blog

12 Ways to Fund a Business—and 4 “Rules” to Remember

Joe Ruvacalba, a plumber-turned-entrepreneur from Rancho Cucamonga, California, started his own plumbing company with just $10,000, but soon encountered cash flow problems.

“Your first client check might not arrive for 30 to 60 days. But you still have to pay for labor and material and everything else,” Ruvacalba told a reporter in an article weighing the costs of cash advances.

Banks wouldn’t lend to Ruvacalba, so he resorted to a merchant cash advance. The first was for $50,000, and included another $20,000 in fees and other charges. It was paid back within seven months, but Ruvacalba’s challenges weren’t done. He saw the only way to grow his business, keep on top of his payroll expenses and pay back his previous cash advance was by securing more merchant cash advances.

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Are Stocks the Best Long-Term Investment?

Busting the Biggest Stock Market Myths

“Learn about different investment vehicles and asset classes and… you can make confident, informed choices about what’s best for you.
I am very concerned about the millions of baby boomers who are counting on the stock market to deliver them a safe, sound, long retirement. I am afraid the baby boomers who are counting on the stock market are in trouble.

—Robert  Kiyosaki, 2014 interview

Three of the most pervasive myths perpetuated by typical financial advice are:

  1. The stock market is the best place to invest long-term,
  2. Bonds are the best place for your safe and steady money, and
  3. The trick to successful investing is simply balancing how much you have in stocks and how much you have in bonds, according to your risk tolerance, age, and other factors.

Today, we’re calling “BS” on this limited thinking!

Last week, we issued a warning about bonds in 2018, asking if bonds were still a good place for safe money. (The short answer was, “No.”)

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Warning: Are Bonds a Bad Bet in 2018?

Bond volatility increases while profits vanish

If you’ve been paying attention, you’ll know that bonds aren’t what they used to be. Values are declining, risk is up, investors are selling, bond funds are underperforming, and municipal bonds are no longer the safe haven they once were.

With the demise of the bond insurance industry in the financial crisis, credit quality in the market has become a much bigger concern for investors,” reported financial journalist Andrew Osterland on February 28, 2018 for Earlier in the year, Financial Times noted sell-offs and declared that “the long bond rally could stall—and perhaps even unravel—in 2018.” This week, noted “concerns over volatility” in high-yield bonds. Even, which typically faithfully tows the line of “typical” financial advice, had harsh words for bonds in a December 2017 article:

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Thinking Rich: Resources for a Growth and Abundance Mindset

 “An amazing potential exists to lift someone’s income and financial success purely and solely by lifting certain barriers from their thinking.”
Dan Kennedy

What is the difference between “the millionaire next door” and your neighbor who is silently trapped in debt? What distinguishes the billionaires and business leaders of the world from the rest of us?

The difference is mindset.

With an abundance mindset, people create massive wealth from nothing but an idea, the confidence that it can be done, and the determination to see it through. Without a growth and abundance mindset, people begin with lottery winnings and inherited fortunes and end up with nothing.

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How to Hit the Tax Target (and Why It Matters)

If Goldilocks paid taxes, she’d want to pay just the right amount—not too much or too little.

But real people who don’t live in a fairytale tend to overpay their taxes, giving the IRS free use of their money in exchange for smaller paychecks.

Yes, most Americans have either accidentally or voluntarily shrunk their take-home pay.

And of those who don’t overpay taxes, many have underpaid and will struggle to catch up.

If you are one of the majority of Americans overpaying or underpaying your taxes, here’s what to do—and why.

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Should You Leave Your Children an Inheritance?

“The successful giver knows it is better to give an orchard than a harvest.”
–Kim Butler and Kate Phillips

This article has been exerpted/adapted from the forthcoming Family Banking Book.

An inheritance is a gift—not an obligation, but there is a strong cultural tradition of leaving an inheritance, at least, if there are assets to be left. However, it’s a tradition that can no longer be assumed to be “the way things are.” Many working and middle-class folks already feel they have under-saved for retirement, never mind an inheritance. Other parents question if their gift will be used wisely, causing a majority of givers to remain silent about the details, fearing it could sabotage their children’s ambitions or independence. And ultra-wealthy have been making headlines as they re-think how—and how much—to give.

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Preparing for a Financial Resurrection

Have you ever failed financially? Has financial recovery ever taken longer than you hoped? If so, you’re not alone. This week, we asked co-author, friend and team member Kate Phillips of to share her experiences and insights.

Ten years ago, I described the Financial Crisis as “the dark before the dawn” in a blog post that went viral. At the time, I was a financial coach, but after transitioning into my own business just before the Financial Crisis, I was beginning to have my own money troubles.

I was entering into my own financial dark night of the soul, and those troubles were about to get much worse. Little did I realize that blog post would become my own encouragement in the months and years to follow. It contained essential lessons I revisit and share today.

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