7 Going Broke Strategies
Ever wondered what Mr. Trump felt like going broke? But, I’ll bet he had a back door strategy.
All of us, at one time or another has felt that helplessness of not having enough money. Royalty nor billionaires are not spared. You know the feeling:
a) At the bar you realize you’ve brought the wrong wallet.
b) Daddy forgot to update your bank allowance account and you need to get oh, so must have booties with gold lace eyes inserts.
c) The Sultan of Brunei having to downgrade all his resources in half. That’s a huge chunk of the country’s recources to the tune of about 20 billion US$ - some say it’s only 15, but who’s counting?
But you see, super rich or cash poor, we all have the same singular idea – survival. So, what’s your survival strategy?
In Wall Street it’s called the exit strategy.
Now, how would you structure your financial exit? Remember, you’re you’re going broke, and this is about survival. I know, I know, you get stunned by all that weight on your shoulders, so here’re are some suggestions.
1) Treat your girlfriend or boyfriend like your personal bank account. Depending on his or her patience, I’d say you could get kicked out the next day or the next month. This is usually a smaller amount of money, but do you really have a plan in place? Read below.
2) You’re up to your eyeballs in bills and all that expert consolidation is not helping. You’re living bare to the bone and still not paying down that mountain of debt. Then you lose your business or job. No bail outs in sight. A terrible scenario.
Do this – when you actually begin to take on debt (or even before), buy a life insurance with bankruptcy protection. Insure your business against liability and personal illness through your business (or set up an operating small limited liability business). Do your math and see the viability of your financial situation. If a couple of independent experts tell you to pack it in, do so. But of course, you’ve been seeking a bail out. Find it from a close person to hold it when you need it. You know the end of your business or financial situation is upon you as you go bankrupt. But then, you do have somewhere to turn to which is not accountable upon you as debt.
3) You travel regularly and you have been using bank accounts overseas – but if it so happens that those bank accounts are somehow not accountable to your financial situation, ask your tax lawyer about it. It might be a prtected boon to you.
4) This is often the best strategy – negotiate with your debtors. Bring the debt down or at least have them accept all repayment on principal alone – no interest over XXX amount of time. This is far better than having debt collectors hounding you. (BTW you have a recourse against unethical abuses – check with your consumers associations in your country). It hurts your credit but better than going bankrupt.
5) Get paid. Who owes you money? Try collecting. Be pleasant and proper first. Then be as unpleasant as you are treated. Debt collections is the practical last resort before court action (which should be avoided because of costs). Remember to pay yourself first
6) Then there’s that Swiss bank hideaway. Of course, any decent human being will not do anything illegal like hiding someone else’s money there. You do so in good faith – please ask the bank officers there about your rights and obligations.
7) Create an offshore corporation. Keep your funds out of reach is the ultimate strategy. You see, most people think this is illegal. That’s not true. It is perfectly legal to use. Ask a specialist lawyer about it. As long as you do not own the funds, it’s not yours to lose. Yes, structure your companies so that some of your money is at least out of reach. Do this legally otherwise seeing the inside of a jail cell is your goal.
Also, you’ll be surprised to learn that most countries or regions near some countries have specially designated locales or jurisdictions that have offshore corporation statuses. They allow the set up offshore banks. The USA, the British Isles, Malaysia, China, etc. all participate in this process.
Now, this is probably not what you were expecting is it?
Tags: Broke Strategy
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