Bigg Successfunding | Bigg Success http://biggsuccess.com Life On Your Own Terms Sat, 11 Feb 2012 13:00:35 +0000 en hourly 1 http://wordpress.org/?v=3.2.1 2006-2011 bigginfo@biggsuccess.com (Bigg Success) bigginfo@biggsuccess.com (Bigg Success) posts 1440 Life On Your Own Terms Bigg Success Bigg Success bigginfo@biggsuccess.com No no http://biggsuccess.com/wp-content/uploads/2010/02/Showlogo-144_144.jpg Bigg Success http://biggsuccess.com 144 144 My Employer is Eliminating 401(k) Matches http://biggsuccess.com/2009/01/26/my-employer-is-eliminating-401k-matches/ http://biggsuccess.com/2009/01/26/my-employer-is-eliminating-401k-matches/#comments Mon, 26 Jan 2009 07:00:09 +0000 George Krueger & Mary-Lynn Foster http://biggsuccess.com/?p=1536 retirement Companies are responding aggressively to the bad economic news. Layoffs, hiring freezes, and salary freezes have been some of the most common actions so far.

___

___

Now, more and more employers are looking at eliminating the matching of 401(k) contributions. According to a survey by Watson Wyatt, the global human resources and financial services firm, things are changing quickly. In October, 2% of firms said they had already cut back on these matches and 4% said they planned to. Two months later, in December, 3% had already made the cut and 7% said they intended to.

And these are large companies. Established brands that we all know. Motorola, FedEx, Kodak, and Starbucks just to name a few.

They’re usually using the word “suspend” rather than “eliminate” when they announce these cuts. But it raises a question:

If my employer stops matching my contribution to my
401(k), should I still keep making contributions myself?

It forces us to save

This is perhaps the biggest reason to keep making contributions. Financial planners have said for years that we should pay ourselves first. Investing it before we get it, as we do with our 401(k), is the best way to make sure that happens.

Most people report that they don’t really miss the money. It’s like the taxes that are deducted from our paychecks – the government knows most of us won’t miss the money if we don’t see it.

Of course, there are ways to set up an automatic deduction from our checking or savings account for investments outside of a 401(k). That’s really close to having it deducted from our paycheck, but it’s not quite the same. That little variation can make a bigg difference for some people. You have to judge that for yourself.

Higher limits

The next best option to a 401(k) for most people would be an IRA because contributions may also be deductible. You should check with your financial advisor about the specifics of your situation.

Because you invest before paying taxes, it’s as if the government is making part of the contribution for you. For example, if you made a $1,000 contribution to one of these retirement plans and you’re in the 25% tax bracket, you would pay $250 less in taxes. So, in essence, you’re only out of pocket $750.

With either plan, you don’t pay taxes on the money you earn on your investments until you pull it out. Deductible and deferred – that’s a pretty powerful combination.

Where the 401(k) gains favor is that it has higher maximum limits – your contributions to your 401(k) can total up to $16,500 in 2009 ($22,000 if you’re over 50). You can’t contribute more than $5,000 to an IRA in most cases.

If my employer cuts or eliminates my 401(k) match, are there
reasons to fund my retirement through another vehicle?

A lot of 401(k) plans offer fairly limited investment options and you may pay lower fees in a plan that’s not a 401(k). 

__

Get the tips and tools you need to be a BIGG success.
Subscribe to the Bigg Success Weekly – it’s FREE!

___

The bigger issue

It’s not like we don’t already have a sense of it. But recent months have reinforced this paradigm. We can’t count on anyone or anything for any part of our financial future. We must take full control of our own finances. We have to build our own safety nets to make sure we are financially secure.

How much will you have at retirement?

It really boils down to three factors:

  • how much we invest

  • how much we earn on our investment (after all fees and taxes)
  • how long it is invested

From these three factors, we see that we have three options if we don’t want to retire on less money:

1st – We can try to earn more on the money we invest.
That involves taking more risk and we don’t have much appetite for that right now. So this probably isn’t going to fly with most of us.

2nd – We can postpone our retirement.
This buys us more time. People who are really close to retirement right now may not have much of a choice. They may have to do this. But if you still have some time on your side, there may be a better way.

3rd – We can increase our contributions.
Look at your budget and see if there is any way you can make up for the investment your company was making.

If your employer reinstates matching contributions, you can stop contributing at the increased rate and enjoy the extra money in your budget … or …

… you can keep making your higher contributions to give your retirement a kick!

To all our readers in Australia, happy Australia Day! And we hope our friends in India enjoy Republic Day!

And thank you so much for spending time with us today. Join us next time when we discuss extreme multi-tasking. Until then, here’s to your bigg success!

Subscribe to The Bigg Success Show in iTunes. 

Subscribe to the Bigg Success feed.

Direct link to The Bigg Success Show audio file:
http://media.libsyn.com/media/biggsuccess/00316-012609.mp3

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I Need Money! Should I Borrow from my Retirement Plan?

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I Need Money! Should I Cash Out My Retirement Plan?

(Image in today's post by woodsy)

]]> http://biggsuccess.com/2009/01/26/my-employer-is-eliminating-401k-matches/feed/ 2 00:01:01 Companies are responding aggressively to the bad economic news. Layoffs, hiring freezes, and salary freezes have been some of the most common actions so ... Companies are responding aggressively to the bad economic news. Layoffs, hiring freezes, and salary freezes have been some of the most common actions so far. ___ ___ Now, more and more employers are looking at eliminating the matching of 401(k) contributions. According to a survey by Watson Wyatt, the global human resources and financial services firm, things are changing quickly. In October, 2% of firms said they had already cut back on these matches and 4% said they planned to. Two months later, in December, 3% had already made the cut and 7% said they intended to. And these are large companies. Established brands that we all know. Motorola, FedEx, Kodak, and Starbucks just to name a few. They#8217;re usually using the word #8220;suspend#8221; rather than #8220;eliminate#8221; when they announce these cuts. But it raises a question: If my employer stops matching my contribution to my 401(k), should I still keep making contributions myself? It forces us to save This is perhaps the biggest reason to keep making contributions. Financial planners have said for years that we should pay ourselves first. Investing it before we get it, as we do with our 401(k), is the best way to make sure that happens. Most people report that they don#8217;t really miss the money. It#8217;s like the taxes that are deducted from our paychecks #8211; the government knows most of us won#8217;t miss the money if we don#8217;t see it. Of course, there are ways to set up an automatic deduction from our checking or savings account for investments outside of a 401(k). That#8217;s really close to having it deducted from our paycheck, but it#8217;s not quite the same. That little variation can make a bigg difference for some people. You have to judge that for yourself. Higher limits The next best option to a 401(k) for most people would be an IRA because contributions may also be deductible. You should check with your financial advisor about the specifics of your situation. Because you invest before paying taxes, it#8217;s as if the government is making part of the contribution for you. For example, if you made a $1,000 contribution to one of these retirement plans and you#8217;re in the 25% tax bracket, you would pay $250 less in taxes. So, in essence, you#8217;re only out of pocket $750. With either plan, you don#8217;t pay taxes on the money you earn on your investments until you pull it out. Deductible and deferred #8211; that#8217;s a pretty powerful combination. Where the 401(k) gains favor is that it has higher maximum limits #8211; your contributions to your 401(k) can total up to $16,500 in 2009 ($22,000 if you#8217;re over 50). You can#8217;t contribute more than $5,000 to an IRA in most cases. If my employer cuts or eliminates my 401(k) match, are there reasons to fund my retirement through another vehicle? A lot of 401(k) plans offer fairly limited investment options and you may pay lower fees in a plan that#8217;s not a 401(k).#160; __ Get the tips and tools you need to be a BIGG success. Subscribe to the Bigg Success Weekly #8211; it#8217;s FREE! ___ The bigger issue It#8217;s not like we don#8217;t already have a sense of it. But recent months have reinforced this paradigm. We can#8217;t count on anyone or anything for any part of our financial future. We must take full control of our own finances. We have to build our own safety nets to make sure we are financially secure. How much will you have at retirement? It really boils down to three factors: how much we invest how much we earn on our investment (after all fees and taxes) how long it is invested From these three factors, we see that we have three options if we don#8217;t want to retire on less money: 1st #8211; We can try to earn more on the money we invest. That involves taking more risk and we don#8217;t have much appetite for that right now. So this probably isn#8217;t going to fly with most of us. 2nd #8211 Financial,Freedom,,Money bigginfo@biggsuccess.com no No Finding Your Passion One Week at a Time http://biggsuccess.com/2008/07/31/finding-your-passion-one-week-at-a-time/ http://biggsuccess.com/2008/07/31/finding-your-passion-one-week-at-a-time/#comments Thu, 31 Jul 2008 05:30:52 +0000 George Krueger & Mary-Lynn Foster http://biggsuccess.com/?p=1101 at_the_topToday, we welcomed Sean Aiken to The Bigg Success Show. Sean graduated from college a little over a year ago but didn’t know what he wanted to do. So he decided to work a different job every week for one year. In the process, he raised over $20,000 for charity. His journey has been covered by the Canadian Broadcasting Corp, The New York Times, Good Morning America, Radio France, The Australian Radio Network, and too many more to mention.

.

.

georgeSean, you went from being a college graduate to having had more jobs than just about anyone I know. And you did it all in a year!

.

seanExactly! That was the problem when I graduated … I didn’t know which job I wanted. My dad gave me some advice my last year of college that stuck with me. He said it didn’t matter what I did as long as it was something I was passionate about. So not knowing where those passions lie, I came up with the idea to go out and try out a whole bunch of different jobs to see what I like and don’t like about different careers. Then I could make a better choice. So I started my web site, OneWeekJob.com, and said that anyone anywhere in the world could offer me a job for one week. Then I would go around for a year and do all these different jobs. It worked out pretty well.

.

georgeNow, at any point, did your dad say … I told you to find your passion, but this is crazy?

.

.

seanDefinitely! When I first thought up the idea, and I told him, he asked if I was kidding him and said I should get a real job … I told him it was his fault!

.

marylynn So you basically lived kind of like a vagabond … through the generosity of the people in the town that you were working in, you would have a place to stay?

.

seanYeah, people following along on the web site would e-mail to offer a place to stay if I came to their town. Oftentimes, I’d stay with my employer. About Week 5 into the project, a job search engine, nicejob.ca, came on board to sponsor the project – they helped out with some travel expenses as well.

.

marylynn Let’s say you were working a job in Arizona and your next job offer was in San Francisco? How would you make it to your different locations?

.

seanIt always changed. Sometimes by bus, sometimes hitchhiking, sometimes flying. That was a bigg aspect to the project – trying to manage all the logistics. There was a period where I was in Denver, Colorado and then I was back in Vancouver for the weekend en route to Hawaii. These are all consecutive weeks. Then on to Los Angeles, then New York, Florida, Wyoming to be a cowboy, and then on to Washington, D.C.

.

georgeOut of all the jobs you’ve had, what was your favorite, Sean?

.

.

seanI have … maybe a top five. When I was in Hawaii, I was a volcano park ranger. A fashion buyer in New York was really cool, and an advertising executive. I also worked with the Canadian Air Force, and I got to fly a helicopter and a military transport plane. That was a great experience as well. Also a cancer fundraiser – I really enjoyed that job.

.

marylynn So do you think that you’ve found your passion?

.

.

georgeIs dad happy yet … that’s what we really want to know?

.

.

seanI think that going out and trying to find my passion has almost turned into a job all by itself; it’s kind of turned into a passion all by itself in that, it’s helped and inspired others to go after their passions. Now I’m writing a book about the experience that will be out in the Spring of 2009. So I’ll be doing that for awhile, as well as talks. It actually might become a TV show. I’m working on a documentary, so this is going to keep me busy for the next few years.

.

marylynn And there’s a way for people to help you get this documentary done?

.

.

seanMy best friend, Ian MacKenzie, came out on the road with me, starting in about Week 19 or so. We started filming video episodes about what I was learning, interviewing my employers, and talking about getting from job to job. So we’re putting it all together into a documentary now. We’re asking for help in raising funds for that. People can become a producer if they’re willing to donate an hour of their wage. Anyway who donates will be a producer of the film and their name will appear in the end credits.

.

georgeWhat I love is that you’ve created your own job, your own role, your own space by doing this. That’s all right, Sean.

.

marylynn Now tell your dad that! We’re impressed by what you’ve done. It’s so interesting … such a cool story. Thanks so much, Sean, for spending some time with us today!

.

Subscribe to The Bigg Success Show in iTunes. 

Subscribe to the Bigg Success feed.  

Related posts

Leaping From Place To Place: See The World While You Work

Retire to Work: Live Where You Want Now but Keep Working 

(Images from OneWeekJob.com's photostream on Flickr)

]]> http://biggsuccess.com/2008/07/31/finding-your-passion-one-week-at-a-time/feed/ 7 00:01:01 Today, we welcomed Sean Aiken to The Bigg Success Show. Sean graduated from college a little over a year ago but didn#8217;t know what he ... Today, we welcomed Sean Aiken to The Bigg Success Show. Sean graduated from college a little over a year ago but didn#8217;t know what he wanted to do. So he decided to work a different job every week for one year. In the process, he raised over $20,000 for charity. His journey has been covered by the Canadian Broadcasting Corp, The New York Times, Good Morning America, Radio France, The Australian Radio Network, and too many more to mention. . . Sean, you went from being a college graduate to having had more jobs than just about anyone I know. And you did it all in a year! . Exactly! That was the problem when I graduated ... I didn#8217;t know which job I wanted. My dad gave me some advice my last year of college that stuck with me. He said it didn#8217;t matter what I did as long as it was something I was passionate about. So not knowing where those passions lie, I came up with the idea to go out and try out a whole bunch of different jobs to see what I like and don#8217;t like about different careers. Then I could make a better choice. So I started my web site, OneWeekJob.com, and said that anyone anywhere in the world could offer me a job for one week. Then I would go around for a year and do all these different jobs. It worked out pretty well. . Now, at any point, did your dad say ... I told you to find your passion, but this is crazy? . . Definitely! When I first thought up the idea, and I told him, he asked if I was kidding him and said I should get a real job ... I told him it was his fault! . So you basically lived kind of like a vagabond ... through the generosity of the people in the town that you were working in, you would have a place to stay? . Yeah, people following along on the web site would e-mail to offer a place to stay if I came to their town. Oftentimes, I#8217;d stay with my employer. About Week 5 into the project, a job search engine, nicejob.ca, came on board to sponsor the project #8211; they helped out with some travel expenses as well. . Let#8217;s say you were working a job in Arizona and your next job offer was in San Francisco? How would you make it to your different locations? . It always changed. Sometimes by bus, sometimes hitchhiking, sometimes flying. That was a bigg aspect to the project #8211; trying to manage all the logistics. There was a period where I was in Denver, Colorado and then I was back in Vancouver for the weekend en route to Hawaii. These are all consecutive weeks. Then on to Los Angeles, then New York, Florida, Wyoming to be a cowboy, and then on to Washington, D.C. . Out of all the jobs you#8217;ve had, what was your favorite, Sean? . . I have ... maybe a top five. When I was in Hawaii, I was a volcano park ranger. A fashion buyer in New York was really cool, and an advertising executive. I also worked with the Canadian Air Force, and I got to fly a helicopter and a military transport plane. That was a great experience as well. Also a cancer fundraiser #8211; I really enjoyed that job. . So do you think that you#8217;ve found your passion? . . Is dad happy yet ... that#8217;s what we really want to know? . . I think that going out and trying to find my passion has almost turned into a job all by itself; it#8217;s kind of turned into a passion all by itself in that, it#8217;s helped and inspired others to go after their passions. Now I#8217;m writing a book about the experience that will be out in the Spring of 2009. So I#8217;ll be doing that for awhile, as well as talks. It actually might become a TV show. I#8217;m working on a documentary, so this is going to keep me busy for the next few years. . And there#8217;s a way for people to help you get this documentary done? . . My best friend, Ian MacKenzie, came out on the road with me, starting in about Week 19 or so. We started filming video episodes about what I was learning, interviewing my employers, and talking about getting from job to job. So we#8217;re putting it all together into a documentar Personal,Growth bigginfo@biggsuccess.com no No Don’t Fear the Banker! http://biggsuccess.com/2008/05/06/dont-fear-the-banker/ http://biggsuccess.com/2008/05/06/dont-fear-the-banker/#comments Tue, 06 May 2008 06:30:25 +0000 George Krueger & Mary-Lynn Foster http://biggsuccess.com/2008/05/06/dont-fear-the-banker/ A lot of us are very uncomfortable talking about money, whether that means negotiating your salary, asking for a sale, or asking for a loan. So the thought of going to the bank to get a loan can be very intimidating.

The loan process seems somewhat mysterious. Wouldn’t it by nice to know where bankers are coming from? Then you would be better positioned to get the money you need.

3 things to understand about your banker

#1 – Banks can’t afford to lose money.
A lot of people don’t realize that banks operate on relatively thin profit margins. So, contrary to popular belief, they don’t make that much money on every loan.

The biggest question every banker has when looking at every loan proposal is …

Will we get paid back?

They’re more concerned about the return OF their investment than the return ON their investment. That comes later.

#2 – Banks don’t fund start-ups.
This is perhaps one of the biggest misperceptions in the business world. People think the bank is the best place to go for money they need to start a business.

To which we say, reread our first point! Bankers are relatively risk averse for the reasons stated above and more. So banks don’t tend to lend money to new, unproven firms.

You might be saying, “But I know people who got money to start their business from a bank.” Here’s the distinction – the bank wasn’t loaning money to their BUSINESS; they loaned them money as individuals FOR their business. If you look deeper, you’ll find that, in almost every case, they secured the loan with equity in their house or some other asset.

#3 – Banks need to lend money.
That’s their business. So if you need money, and you can prove that you can pay it back, and you have some assets to secure the loan, go to the bank with confidence!

Your bank is just like your favorite video store.
Video stores rent DVDs for a fee. Banks rent money for a fee. So going to the bank is just like renting a movie. You have to return the movie and pay a fee. And hey, unlike video stores, bankers don’t charge their fees upfront!

Click on our Comment link below to share your thoughts on today's post
Click on the Share This button below to Digg, Stumble, Mixx more

Our bigg quote today is by the great Stephen Covey:

“Seek first to understand, then to be understood.”

Understand your banker’s needs so you stand to get your money needs. 

Next time, we’ll discuss how to offer criticism without being critical. Until then, here’s to your bigg success!

Subscribe to The Bigg Success Show in iTunes. 

Subscribe to the Bigg Success feed.

Related posts 

How To Become A Millionaire

Good Debt vs. Bad Debt

How To Get Your Customers To Finance Your Business

5 Places to Find Cash for Your Business Today

I Have An Idea For A Business! Now What?

Lessons Learned From A Bankrupt Business Owner

(Image by svilen001)

]]> http://biggsuccess.com/2008/05/06/dont-fear-the-banker/feed/ 3 00:01:01 A lot of us are very uncomfortable talking about money, whether that means negotiating your salary, asking for a sale, or asking for a loan. ... A lot of us are very uncomfortable talking about money, whether that means negotiating your salary, asking for a sale, or asking for a loan. So the thought of going to the bank to get a loan can be very intimidating.The loan process seems somewhat mysterious. Wouldn#8217;t it by nice to know where bankers are coming from? Then you would be better positioned to get the money you need.3 things to understand about your banker#1 #8211; Banks can#8217;t afford to lose money.A lot of people don#8217;t realize that banks operate on relatively thin profit margins. So, contrary to popular belief, they don#8217;t make that much money on every loan.The biggest question every banker has when looking at every loan proposal is ...Will we get paid back?They#8217;re more concerned about the return OF their investment than the return ON their investment. That comes later. #2 #8211; Banks don#8217;t fund start-ups. This is perhaps one of the biggest misperceptions in the business world. People think the bank is the best place to go for money they need to start a business. To which we say, reread our first point! Bankers are relatively risk averse for the reasons stated above and more. So banks don#8217;t tend to lend money to new, unproven firms.You might be saying, #8220;But I know people who got money to start their business from a bank.#8221; Here#8217;s the distinction #8211; the bank wasn#8217;t loaning money to their BUSINESS; they loaned them money as individuals FOR their business. If you look deeper, you#8217;ll find that, in almost every case, they secured the loan with equity in their house or some other asset.#3 #8211; Banks need to lend money.That#8217;s their business. So if you need money, and you can prove that you can pay it back, and you have some assets to secure the loan, go to the bank with confidence!Your bank is just like your favorite video store.Video stores rent DVDs for a fee. Banks rent money for a fee. So going to the bank is just like renting a movie. You have to return the movie and pay a fee. And hey, unlike video stores, bankers don#8217;t charge their fees upfront! Click on our Comment link below to share your thoughts on today#39;s post Click on the Share This button below to Digg, Stumble, Mixx more Our bigg quote today is by the great Stephen Covey:#8220;Seek first to understand, then to be understood.#8221;Understand your banker#8217;s needs so you stand to get your money needs.#160; Next time, we#8217;ll discuss how to offer criticism without being critical. Until then, here#8217;s to your bigg success!Subscribe to The Bigg Success Show in iTunes.#160;Subscribe to the Bigg Success feed.Related posts#160;How To Become A MillionaireGood Debt vs. Bad DebtHow To Get Your Customers To Finance Your Business5 Places to Find Cash for Your Business TodayI Have An Idea For A Business! Now What?Lessons Learned From A Bankrupt Business Owner(Image by svilen001) Business,,Business,Ownership,,Entrepreneurship,,Money bigginfo@biggsuccess.com no No Don't Fear the Banker! http://biggsuccess.com/2008/05/06/dont-fear-the-banker-2/ http://biggsuccess.com/2008/05/06/dont-fear-the-banker-2/#comments Tue, 06 May 2008 06:30:25 +0000 admin http://biggsuccess.com/2008/05/06/dont-fear-the-banker/ A lot of us are very uncomfortable talking about money, whether that means negotiating your salary, asking for a sale, or asking for a loan. So the thought of going to the bank to get a loan can be very intimidating.

The loan process seems somewhat mysterious. Wouldn’t it by nice to know where bankers are coming from? Then you would be better positioned to get the money you need.

3 things to understand about your banker

#1 – Banks can’t afford to lose money.
A lot of people don’t realize that banks operate on relatively thin profit margins. So, contrary to popular belief, they don’t make that much money on every loan.

The biggest question every banker has when looking at every loan proposal is …

Will we get paid back?

They’re more concerned about the return OF their investment than the return ON their investment. That comes later.

#2 – Banks don’t fund start-ups.
This is perhaps one of the biggest misperceptions in the business world. People think the bank is the best place to go for money they need to start a business.

To which we say, reread our first point! Bankers are relatively risk averse for the reasons stated above and more. So banks don’t tend to lend money to new, unproven firms.

You might be saying, “But I know people who got money to start their business from a bank.” Here’s the distinction – the bank wasn’t loaning money to their BUSINESS; they loaned them money as individuals FOR their business. If you look deeper, you’ll find that, in almost every case, they secured the loan with equity in their house or some other asset.

#3 – Banks need to lend money.
That’s their business. So if you need money, and you can prove that you can pay it back, and you have some assets to secure the loan, go to the bank with confidence!

Your bank is just like your favorite video store.
Video stores rent DVDs for a fee. Banks rent money for a fee. So going to the bank is just like renting a movie. You have to return the movie and pay a fee. And hey, unlike video stores, bankers don’t charge their fees upfront!

Click on our Comment link below to share your thoughts on today's post
Click on the Share This button below to Digg, Stumble, Mixx more

Our bigg quote today is by the great Stephen Covey:

“Seek first to understand, then to be understood.”

Understand your banker’s needs so you stand to get your money needs. 

Next time, we’ll discuss how to offer criticism without being critical. Until then, here’s to your bigg success!

Subscribe to The Bigg Success Show in iTunes. 

Subscribe to the Bigg Success feed.

Related posts 

How To Become A Millionaire

Good Debt vs. Bad Debt

How To Get Your Customers To Finance Your Business

5 Places to Find Cash for Your Business Today

I Have An Idea For A Business! Now What?

Lessons Learned From A Bankrupt Business Owner

(Image by svilen001)

]]> http://biggsuccess.com/2008/05/06/dont-fear-the-banker-2/feed/ 3 00:01:01 A lot of us are very uncomfortable talking about money, whether that means negotiating your salary, asking for a sale, or asking for a loan. ... A lot of us are very uncomfortable talking about money, whether that means negotiating your salary, asking for a sale, or asking for a loan. So the thought of going to the bank to get a loan can be very intimidating.The loan process seems somewhat mysterious. Wouldn#8217;t it by nice to know where bankers are coming from? Then you would be better positioned to get the money you need.3 things to understand about your banker#1 #8211; Banks can#8217;t afford to lose money.A lot of people don#8217;t realize that banks operate on relatively thin profit margins. So, contrary to popular belief, they don#8217;t make that much money on every loan.The biggest question every banker has when looking at every loan proposal is ...Will we get paid back?They#8217;re more concerned about the return OF their investment than the return ON their investment. That comes later. #2 #8211; Banks don#8217;t fund start-ups. This is perhaps one of the biggest misperceptions in the business world. People think the bank is the best place to go for money they need to start a business. To which we say, reread our first point! Bankers are relatively risk averse for the reasons stated above and more. So banks don#8217;t tend to lend money to new, unproven firms.You might be saying, #8220;But I know people who got money to start their business from a bank.#8221; Here#8217;s the distinction #8211; the bank wasn#8217;t loaning money to their BUSINESS; they loaned them money as individuals FOR their business. If you look deeper, you#8217;ll find that, in almost every case, they secured the loan with equity in their house or some other asset.#3 #8211; Banks need to lend money.That#8217;s their business. So if you need money, and you can prove that you can pay it back, and you have some assets to secure the loan, go to the bank with confidence!Your bank is just like your favorite video store.Video stores rent DVDs for a fee. Banks rent money for a fee. So going to the bank is just like renting a movie. You have to return the movie and pay a fee. And hey, unlike video stores, bankers don#8217;t charge their fees upfront! Click on our Comment link below to share your thoughts on today#39;s post Click on the Share This button below to Digg, Stumble, Mixx more Our bigg quote today is by the great Stephen Covey:#8220;Seek first to understand, then to be understood.#8221;Understand your banker#8217;s needs so you stand to get your money needs.#160; Next time, we#8217;ll discuss how to offer criticism without being critical. Until then, here#8217;s to your bigg success!Subscribe to The Bigg Success Show in iTunes.#160;Subscribe to the Bigg Success feed.Related posts#160;How To Become A MillionaireGood Debt vs. Bad DebtHow To Get Your Customers To Finance Your Business5 Places to Find Cash for Your Business TodayI Have An Idea For A Business! Now What?Lessons Learned From A Bankrupt Business Owner(Image by svilen001) Business,,Business,Ownership,,Entrepreneurship,,Money bigginfo@biggsuccess.com no No