Just beginning is liberating

In the coming year you have absolutely no other choice but to rid yourself of your debts. Just beginning is liberating. You have to do this; you have no other choice if you want a real life.


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Make decisions based on reality

Resolve to make decisions based on reality.

It's a simple concept not often followed. People make X but live on Y. Instant gratification comes with a price tag that has to be financed with other people's money.

You know your income. Not what you want it to be, but what it is. You know your expenses. Not what you wish they were, but what they are. Write it all down.

Do the math, welcome reality.
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debIt card

Use your debIt card, not your debt card.

You just have to change one letter. Coincidence? I don't think so. Go look in the mirror, add "I" to the equation and never use a "debt" card again.

Not a bad resolution to make in a couple of days now is it?
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New Year resolutions

Time to think about making some New Year resolutions. Here's one for you.

Resolve to use only your debit card next year. You shouldn't possess any credit cards. A debit card can do everything a credit card can except create debt.

Not a bad resolution, and not a bad tool to ensure your debt-free life stays on track. Following this advice ensures no new debt.
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Debt as a gift

Did you give debt as a gift this year?

Buying gifts on credit and handing them to someone else who lives in the same household, on the same income is nothing more than handing them more debt. How can this be characterized as “gift giving?”

This advice is given today for a reason. Pack up those debt-riddled gifts and return them immediately.
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The difference between you and 70% of the population

The difference between you and 70% of the population is that the gifts you gave yesterday were PAID-FOR.

Another difference is that next month they'll get billed for the gifts. You won't. It's a cold lonely walk from the mailbox to the house when you're holding a credit card bill. Good thing that isn't you anymore, huh?

In February you won't be out the interest they're paying. In March . . .you get the idea.
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Pen to paper

Most people actually find money when they put pen to paper and do a real budget. Money always makes a nice gift. Why don’t you give yourself some this Christmas?
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A great gift

Collect all your credit card statements, put them in a box, and put the box under the Christmas tree.

Open the box on Christmas morning and stare at those statements. Vow that next Christmas will be different.

This gift is for you and your family. Each Christmas from this point forward will be better financially. This is a great gift to give and receive.
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Ghosts of Christmas Past

The Financial Ghosts of Christmas Past, Present and Future.

If you're not learning from the Past how to plan in the Present for a bright Future, your Christmases to come won't be worth looking forward to.

If you don't learn from the mistakes you made in the past you leave your financial future to chance and that's irresponsible, impacting not just you but those depending on you.
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Start a Home Maintenance Fund

Another Christmas Gift to Self Idea: Start a Home Maintenance Fund. Set it up to always total 1% to 3% of your home's value and keep it separate to handle all things related to home maintenance and upkeep.

If your home is older, lean toward 3% as your total. It's yet another shield against life’s happenings.
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Stuff

We all have “stuff.” But do you own your “stuff” or are you just holding it for the store?
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Ask yourself

You might think a new car is a great Christmas gift. But, ask yourself:

Would you rather have a $40,000 car and $5,000 in the bank or a $5,000 car and $40,000 in the bank?

Another thing nice about $5,000 cars is they are PAID-FOR in full, which is how your Christmas should be this year and forever more.
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Christmas Gift To Self Idea

Christmas Gift To Self Idea: Instead of living paycheck to paycheck live on last month’s income.

It takes some discipline. You save up enough money to cover a month's worth of living expenses. When you have that amount saved you pay bills with that money.

At the same time you deposit your current paycheck in the same account.

You're always a month ahead and it’s a Christmas gift that gives all year long.
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“PAID-FOR” Christmas

Do away with “yeah but” and “I want” gifts this year. Pledge that every gift you give will be purchased with money that is yours, and that you will have a “PAID-FOR” Christmas from this Christmas forward.
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Christmas Gift Idea

Christmas Gift Idea: Commit today to begin paying off your house.

Yes, you can live in a paid-for house. Our grandparents would shake their heads at us for not understanding this, and our great-grandparents would be shocked and disbelieving we don’t already know this.
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Spread the word

Make some deals. Tell anyone who is buying you a gift to pay down their debt instead. Tell them you'll do the same on your end of the arrangement.

Paid-For Christmas . . . spread the word!
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Money, in-laws, religion and kids

Money, in-laws, religion and kids.

Money is the number one cause of divorce. The others fall in line after. Christmas involves all of these. Have you at least got number one under control?
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Conquer Debt Year Round

Former smokers will talk of wanting a cigarette and those who have lost weight will admit a longing for chocolate cake.

But you won’t find anyone who dug their way out of debt lamenting no longer having to pay for spending money they didn't have.
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Becoming debt-free

Becoming debt-free is a great gift to your family. Write a letter to them, sign it, and put it under the tree to be opened and read on Christmas morning.
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SCRA

Service members Civil Relief Act (SCRA).

If you're in the military, active or reserve, know what is available to help you. Check out information on this legislation. I want you focused on your own safety, not debt.

Thank you for your service.
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Conquer Debt Year Round

If you're angry about what this calendar has pointed out to you, direct that anger elsewhere -- your mirror to start.
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It has to be

If you're part of a couple, no presents at all for each other until you're out of debt. That's just the way it has to be.
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Presents

Presents under the tree that aren't paid for in full don't belong there. Don't do it, you know better.
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Opting out

Tell friends and family you're opting out of the gift exchange this year because you're addressing your debt.

If you're embarrassed it should be about being in debt, not about opting out of gift giving.

Opting out is a must.
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Think back

Think back. Do you really remember every gift you ever received?

In other words, piling presents on the kids is going to be lost on them in the long run. While the memories of the gifts will fade, the damage to your personal finance can last forever.
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Don't spend what you don't have

The fact Christmas is approaching is no reason to spend money that isn't yours. Don't spend what you don't have. It's really that simple.
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Needs and Wants

Needs and Wants: Needs are paid for with cash. Wants are paid for on credit.

If you "want" something think of the interest you will have to pay. I hope you find you don't "want" it anymore.
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One dollar at a time

As a borrower you are slave to the lender. Refuse to be a slave and start the process one dollar at a time.


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No reason to over-pay for a vehicle

With all the resources available there is absolutely no reason to over-pay for a vehicle. There is Kbb.com or nada.com, just to name a few.

Let your top price be the amount you would get if you tried to re-sell the vehicle immediately after buying. This would be as a private sale, not trade-in. And. yes. this is a used car. Unless you have millions you have no reason to have a brand new car.
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Paid-For Christmas

"Paid-For Christmas"

Don't put one present under that tree that you haven't paid for in full. This is your life, take control.
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Have a number in mind

The person selling the vehicle, be it dealer or private, has a number in mind. You need to do the same. If you don't, it's not a fair fight.
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Prospective employers

Prospective employers check your credit report. How does yours look?


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Budgeting

Budgeting an irregular income is harder than budgeting a set amount income. But, it doesn't get you out of having to do it.

Remember, while the income may bounce around your fixed expenses don't. Housing, utilities, food, gas and oil remain pretty constant. Tackle those first and the others will fall into place.
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Sensibility Saturday and Sunday

Sensibility Saturday and Sunday follows Black Friday.

This is when you take back those things you bought on credit on Black Friday.

You’ve had your fun buying them, but it’s time to take them back.

They aren’t yours and you know better.
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Don't spend what you don't have

"Black Friday” is so named because it is the day retailers make their money. If you are participating it is only with cash and with a set budget on what you are going to spend. The day is full of pitfalls to get you to spend more than you have. So who’s going to win here? You or them?

Don't spend what you don't have!
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Budgeting an irregular income

Budgeting an irregular income is harder than budgeting a set amount income. But, it doesn't get you out of having to do it.

Remember, while the income may bounce around your fixed expenses don't. Housing, utilities, food, gas and oil remain pretty constant. Tackle those first and the others will fall into place.
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Win/Win

When you're car shopping scour the private sales in the paper. There are a lot of people selling cars they can't afford. You get a good deal and you're helping them address their debt. Win/Win.

If you're upside down on your car and the payment is killing your chances of success then get rid of the car. Price it for private sale and move on.

Your next car may be a clunker, but it will be yours free and clear.
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Rigged games

You walk by the booths at the carnival because they are rigged games, but yet you use credit cards.

Do you get what I’m trying to tell you here?
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Credit provisions

There are provisions that allow one credit card company to raise your rates if you miss a payment to another creditor.

You agreed to it the minute you swiped that thing at the pump or store.

Read the agreement. You have no rights. Get over it. Quit whining and quit using the !@#$ cards.
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Don't fall for their tricks

An 18% credit card is 1.5% interest per month.

If you owe $1,000 your interest will be at least $15 for the month. If your minimum payment is 4% you send in $40, of which $15 is interest. Next month your interest is figured on your new balance which is $975.

Do you see what I’m getting at? Don't be blind to the amount of money you're paying over and above what you actually used. Don't fall for their tricks.
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Forever

How long will you have to budget, maintain an emergency fund, keep car and home maintenance funds, and always be thinking about personal finance?

Answer: Forever

This new way of thinking isn't a one and done type deal. However, changing your mindset to succeed in personal finance only has to be done once.

Change the way you think, get your financial life in order, and keep it there!
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Dig your way out

No matter the size of your debt you can dig your way out. If it's large you just need a bigger shovel. There's no telling how long it will take, but it will never happen if you never start.

Don't let the amount of debt be an excuse for not starting the process. Don't let how you got into debt be a deterrent, and don't let friends or family talk you out of starting the process.

This is yours to fix so get started.
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Make a commitment

You must make a commitment to yourself to pay off your credit cards. Once your cards are paid off, the money you were paying out is now yours.

It will be amazing how much money you make each month when you don't have to use it for credit card payments.

Being debt-free is liberating. Try it, and if you don't like it you can always go back into debt. Yeah, I'm sure you'll want to do that, huh?
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Conquer Debt Year Round

The only time it's acceptable to borrow money to get out of debt is when you sell that car you can’t afford and take out a loan for the difference between what you got for it and what you owe on it.

Remember to borrow a little more to buy a clunker to get you back and forth from home to your numerous jobs.

You'll hate having to do this, or at least you should.
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Emergency Fund

If you're living on a single income, or have an irregular income (like a sales job), your Emergency Fund must be a minimum of six months of living expenses.

If you are in a dual income living arrangement and both jobs are stable you may lean more toward the minimum of three months of living expenses in your Emergency Fund.

However, make no mistake. You must have an Emergency Fund. No exceptions.


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Do the right thing

Being debt-free allows you to truly enjoy good fortune when it pays a visit. But, if you're in debt and get lucky you know what to do with every cent of good fortune, right?

Let's say you inherit $10,000 and happen to owe $10,000 on a credit card. Do the right thing; pay off the card!
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A house of cards

You can’t live in a house of cards (pun intended) forever. Eventually those living a life fueled by borrowing will crash and burn. Stay focused on getting out and staying out of debt.

You can't get ahead if you are in debt.

You can't borrow your way to prosperity.

You can't keep moving debt around and make it disappear.

You can't ignore your problem and hope it away. Take control, fix YOUR problem.
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Reach out for help

Don’t be afraid to reach out for help.

There may be programs available to help you out of your financial problems provided you didn't just blatantly create them. I am told many hospitals will work out financing for healthcare, but you have to ask for that help first.

Being too proud can hinder your financial freedom. Being proud is different from being stupid. Ask for help.
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You get the idea

If you get paid weekly, budget for a week. If you get paid every two weeks, budget for those two weeks. Monthly? You get the idea.

You can string weeks together if it makes sense to you. Don’t get frustrated and think you have to budget a perfect month, that doesn't exist for most of us.

Budgeting takes months, if not years, to get right. Don't get frustrated and don't think it's a one time and done deal.
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Thank you Veterans

Our Veterans didn't sacrifice their lives so we could live in debt. They sacrificed so we could live in freedom. To do otherwise is to do them a disservice.

Thank you Veterans, past and present.

Read up on The Soldiers' and Sailors' Civil Relief Act (SSCRA) and pass along the information to anyone you think it can help today.


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Credit card companies

Credit card companies make money when you spend. Don’t get all excited or think it’s a sign of responsibility when they give you access to that money. Take more pride in not participating in their scheme at all.

They couldn't care less about the principal being paid. They want the interest, fees, and late charges. That is free money to them.

Don't play this game 'cause you'll lose.
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Paid-for vacations

Paid-for vacations are even sweeter when you get to return home in your paid-for car to your paid-for house and sit on your paid-for furniture and watch your paid- for television and . . . oh you get the idea, don’t you?
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Pay as little as possible

Walk in a store, look at the salesman, hold up your checkbook and say, “The full amount for what I want is right here. Only you can mess this up.”

Oh ok, be nice about it, but remember their game is to get you to pay as much as possible for what you want. You may want to let the salesman know you're playing your own game -- to pay as little as possible for what you want.

Then you can both go from there . . .or not.
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I deserve this

The phrase “I deserve this” is a lie if you're using a credit card.

You don't deserve anything you can't pay for in full. Don't ask the person next to you if they think this is wrong. You know the answer. Trust yourself. You answer to the person who pays your bills, not to the person who gives you the answer you want to hear.

Pay cash. You may have less, but I promise you will owe less.
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Make more money or reduce your expenses

If the problem is that there isn't enough money to pay your expenses then you either need to make more money or reduce your expenses. It really is that simple.

As you look for income opportunities, remember to be very wary, very afraid of scammers. They just want your money!


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Be up front

Don't let frustrated creditors send you to collections.

Be up front about your money problems with those you owe. More can be solved by engaging them in conversation than can be accomplished ignoring the problem.

Know your rights before the creditors abuse them. The Fair Debt Collection Practices Act is required reading. Know it, study it, use it. You still owe the money but you can control the situation.
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Ask it often

"Will it matter 20 years from now?"

This question pertains to every aspect of your personal finances, to every decision you'll ever make about them. Ask it often.
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Be realistic

Be realistic when you calculate the amount needed in your emergency fund for monthly living expenses. Don’t factor in the lattes.

Sit down and list what you really need. Dave Ramsey calls them the four walls: Food, Utilities, Housing, and Transportation.

Cable, booze, cigarettes, concert tickets, internet, and clothes shouldn't be on the list.

Get real. If you're in emergency mode, you aren't eating out.
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Finances - simple vs. complicated

$120.00 - That's the minimum amount you agree to pay for putting $100 on a credit card at 20%. If you only pay the 2.5% minimum payment each month it will cost you over $300.

Finances are complicated when you factor in interest, double cycle billing, grace periods, transfer fees, APR's, APY's, amortization, monthly payments, etc.

Finances are simple when you don't spend what you don't have and use cash.
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Romans 13:8

Romans 13:8 explains it this way: “Let no debt remain outstanding, except the continuing debt to love one another, for he who loves his fellowman has fulfilled the law.”

Love is one debt that's never paid off. No matter how much we have loved, we are obligated to keep loving one another and, more importantly, God for all He has done through His love for us.

However, FINANCIAL debt should not remain outstanding.
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Scary

Any and all of these define scary.

Debt. No emergency fund. No home maintenance fund. No car repair fund. No money set aside for Christmas, birthdays, or other known events. Adjustable rate mortgages. House payments totaling more than 25% of your take-home pay.

This is jump-off-a-cliff scary, and sadly too many are living like this. Don't be one of that crowd.
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Making the decision

Making the decision to take control and become debt-free is liberating. Now, can you imagine how it will feel when you achieve it?
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Making do with what you have

Budgeting doesn't mean making do with less. Budgeting means making do with what you have. Big difference.

In personal finance the word budget means planning. You can't plan to have money that isn't there. You can dream, you can aspire, but don't plan until the money is real.

In other words, if you make $50,000 then live a $50,000 life, not one that costs $50,000.01. It really is that simple.
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Tax Credit vs. Tax Deduction

Tax Credit: A $1 credit means you pay $1 less in taxes.

Tax Deduction: A $1 deduction reduces the amount of taxable income by $1. This reduces the amount of tax you pay by the percentage your income is taxed as a result of the deduction. If you're taxed at 20% the $1 deduction saved you $0.20.

Know the difference. Congress plays word games to make you think you're getting something you aren't.
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English 101

Blowing what took a long time to save happens way too often. Have this conversation with your kids before they head to college on your money.

English 101 is the same at a high-cost state school or a community college. If your kids don't have a plan let them be indecisive on someone else's dime. Perhaps their own.

They need to grow up. Don't throw money at them and hope for the best. Especially YOUR money.
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Deal with it

Being obsessed with money isn't good.

Being obsessed with getting and staying out of debt is good.

Income minus outgo = YOUR REALITY. Deal with it.


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Risk vs. stupidity

Never confuse risk and stupidity.

You are your own advocate. Don't do anything in your financial life, or any part of your life, without knowing the consequences of the risk you are taking.

If you give this due diligence you will guard against bringing stupidity into the equation.
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Why would anyone ever buy new?

My unofficial study shows a new car depreciates $10,000 during the first 25,000 miles. It depreciates another $10,000 during the subsequent 75,000 miles.

Why would anyone ever buy new?
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Credit card check

Use a credit card at a store and the clerks never check the signature on the back.

Use cash and they hold up the bills to the light to check their authenticity.

There's something wrong with this, don't you think?
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Paying interest on my underwear

Ever notice how store clerks look at you like you've lost your mind when you don't want another 10% off by getting a store credit card?

Of course, you look at these clerks like they've lost their minds when they act like they've never seen anyone pay cash before. Something about paying interest on my underwear just doesn't seem right.

Be polite, the clerk is just doing a job. But, say no nonetheless.


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No magic formula

Look at it, analyze it, calculate it, store it, research it and go over it again and again. The only way to save money is to stay out of debt and spend less.

No magic formula here.
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Win the lottery and then go bankrupt

You hear about people who win the lottery and then go bankrupt.

If they knew how to dictate where money goes and understood what it means to be financially responsible they wouldn't have this problem.

Knowing how to plan your finances not only gets you out of debt it prepares you to handle good fortune when it comes.
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Play a little game

Play a little game. If money were no object what would you do or buy?

I can come up with about $800,000 worth of stuff; $750,000 of it is basically ridiculous.

The moral to the story is you really don't need that much to live pretty well.
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Enough money

Only you can define what is "enough money." If you have everything YOU need, you're fine. Note "need," not "want."

Some say if you have everything you need and want you're a millionaire.

It's ok to want the finer things in life, but it's only acceptable to have them if you can pay for them in full.

Use your wallet as a guide. If you can't pay for it in full today, you can't have it. Period.
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With no recourse

If you settle with a collection agency don't send them a dime unless you get in writing the details of your settlement from the agency.

When you settle make sure the words "with no recourse" are in the documentation. If they aren't, the agency can come back to you for the difference.

And, don’t give them electronic access to your accounts . . . EVER!
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Swimming upstream

When you decided to get out of debt, and never get back into debt, you started swimming upstream.

Stay focused because your financial responsibility will scare some folks. You'll certainly get comments from family, and you may even lose friends along the way.

Smokers all want to quit. Overweight people all want to lose weight. Those in debt all want to be debt-free.

Making it happen is the hard part.
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Sets yourself apart

Want to be different? Get out of debt. That sets you apart from 70% of the people out there.

Seven of every 10 people live paycheck to paycheck. Average household credit card debt is $9K and the average household has nine credit cards.

These figures change daily. Unfortunately they're rising.

Step out of the line of people jumping off the cliff. Be different. Be with us. We have room for you.
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Opposites attract

Opposites attract. Realize this.

It's likely you both aren't savers, nor are you both spenders. But, both of you can agree to dictate where your money goes so it doesn't disappear.

If fear or shyness keeps you from asking the money questions before you get together you need to hold off getting together. You take on a person as a spouse you take on all the stuff that comes with him or her . . . including debt.
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The Total Money Makeover

"The Total Money Makeover" by Dave Ramsey.

Buy it, read it, and buy a copy for those you really care about.

Dave probably won’t care if you loan your copy out either.

www.daveramsey.com. Check it out.
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Let me talk to your supervisor

“Let me talk to your supervisor.”

Learn those words and you'll get better deals. Ask for lower prices. Be polite, give them a chance to earn your business, but make sure the salesman knows you are very aware that you have options when it comes time to make the purchase.

Don’t be timid. It’s your money, so protect it.
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Life is hard enough

There is no rational reason against being financially responsible and prepared. Enough said.

Life is hard enough. Don't let the one thing you control, your personal finances, control you.

Know your income. Know your expenses. Do the math.

C'mon folks . . . WAKE UP!
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Live on less than you make

Live on less than you make and use the extra to pay off debt.

You now owe me $3,500. That's about what the software costs that's supposed to help you pay off your bills and home early. But, you don’t need a computer to tell you if you spend less than you bring home you have some left over to play with.

Also, don't pay to set up a bi-weekly mortgage payment. You can make those extra payments yourself.
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You fell for a scam

Would you admit you fell for a scam? That's part of the reason con artists get away with it. Embarrassment keeps people from reporting the crime.

The deposed dictator scam still works today. For a con to work the mark must be desperate and/or greedy. The sane and careful don't fall for these.

If it's too good to be true . . . it's not true. Be careful. You have what the thieves want. Guard it.
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You can't borrow your way out of debt

You can't borrow your way out of debt.

Consolidation loans, HELOC's, moving from card to card to lower your interest rates are all band-aids. Fix the problem; eliminate the debt.

Those 0% credit cards come with 100% debt.

Stop moving the debt around. By the time you pay a transfer fee, move the debt, and life happens you end up gaining nothing.

Want to get out of debt? Pay the debt. It's that simple.

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Our grandparents

Our grandparents would be mystified at how much debt we have acquired.

We probably would get some sympathy from them until they heard our reasons for being in debt. Then they'd think we were just stupid and deserved what we did to ourselves.

Time honored tip. Don't spend what you don't have.

Try it and see what happens. Go ahead. All you have to lose is more debt.
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Don’t be clueless

In personal finance you can be on offense or defense but don’t be clueless.

Have a budget, have an emergency fund, have a plan for your extra money but don’t go through your financial life surprised when things happen that cost you money.

Personal finance isn't a mystery. Personal finance isn't hard. Personal finance is personal. Get involved in your own finances, you have no other choice.
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Emergency Fund

It’s impossible to think of absolutely everything that could go wrong and cost you money. But, that's no excuse not to plan for these things.

This is called an Emergency Fund and it needs to contain three to six months (minimum) of living expenses. This fund is separate from all your other funds and is not to be touched except in an emergency.

By the way, a vacation is not an emergency.
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Wealth

Making a lot of money doesn't guarantee having wealth.

There are people who make a large amount of money but who are still spending more than they make. Then there are those making a nominal amount of money who have more wealth than you would believe.

Read “The Millionaire Next Door” for a detailed study of this issue.
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Smallest to largest

List your debts smallest to largest. Pay them in that order.

Pay as much as possible on the smallest and the minimums on the others. When the smallest is paid off, add that payment to the next largest and repeat until you're completely debt-free.

Include HELOC’s or other loans where you used your home’s equity. Don't include the original home loan; that's saved for last.

This is called the Debt Snowball.
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Paying the way

If you're paying the way I assume you aren't sending little Billy or Susie off to college to learn how to have a good time. You’re having the talk with them, right?

The only person who should be living a life of leisure and being carefree on your money is you. Don't let your kids do that as they head off to college on your dime. You aren't doing them any favors and hurting your own future in the process.
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Warranty registration

Always take time to fill out warranty registration cards or do it online. It may come in handy. Whether you ever use it doesn't matter. The warranty will never work for you if you don't do your part.

Don't buy extended warranties. They're rip offs, high- cost insurance policies pushed at the counter. If the store has no more faith in the product than that you shouldn't have faith in it either.
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Conquer Debt Year Round

Using cash is a pretty good deterrent to identity theft, don’t you think?
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Bank account access

Never give anyone access to your bank account.

Collectors play this game, promising to take only a set amount if you show a good faith effort and allow them access to your account. Then they clean you out.

Giving access and paying on-line are different. You authorize on-line payments. Giving access is opening the door and telling them to take what they want.

Big difference. Know what you're doing.


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Write it down

Keeping track of spending is easy. Looking at and owning up to what you are spending your money on is the hard part.

Start today. Write it down. Don't be scared of the result. Remember, you can change this behavior.

You are going to surprise yourself by how much money you will find just by opening your eyes.
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Getting into debt is the fast and easy

Nobody said getting out of debt would be fast or easy. Getting into debt is the fast and easy part.

Credit card companies couldn't care less about principal being repaid. They're in it for the interest. You would be, too, if you got 30% on money you loaned. They love it, too, if you miss a payment. Then they can load on fees and penalties.

They want to own you. Are you going to let them own you?
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Car fund

It costs money to drive paid-for vehicles, too, and someday that paid-for vehicle will need to be replaced.

While car payments don’t have to be a fact of life, a car fund in a separate account is. Cars breakdown, tires need to be replaced, oil needs to be changed. These aren't emergencies, be prepared.
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It's time to move

If your house payment (principal, interest, taxes, insurance) exceeds 25% of your household income I'm the bearer of bad news. It's time to move.

Payments more than 25% of your take-home pay create stress. The lawn is no longer as green, the patio no longer as peaceful, and the sound you hear is not just house character creaking, it's something breaking.

Don't turn a dream house into a nightmare. Do it right.


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Fair Debt Collection Practices Act

If you have accounts sent to collection agencies you do know you have rights, correct?

The sole purpose of the Fair Debt Collection Practices Act (FDCPA) is to eliminate abusive practices used by collection agencies. Read up on this and know your rights.

Only you are going to care about you. Don't pay an agency or company to do this for you. Quit the pity party, face your debt, and know your rights.


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Points, rewards, or cash back features

Debt-free people don't talk about the points, rewards, or cash back features of their credit cards, and you sure don’t hear wealthy people extol the virtues of these devices.

No millionaire I know ever used these "tricks" to become financially secure.

Don't fall for the tricks used by credit card companies to get your money. Note, I didn't say to get your business. They want your money, not your business.
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The methods

Oh give it a rest. You aren't as mysterious as you would like to think you are, and those time-tested methods apply to you, too. Budgeting, planning, living within your means, not spending what you don't have. Yes, those are the methods I’m talking about.
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Someone had to tell you this

Call it a spending plan, a cash flow strategy, or a budget. I don’t care what you call it, but having one is not a nicety it’s a requirement.

If you don't tell your money where to go and dictate each dollar's job it will disappear.

If you don't control your spending you eventually will crash.

If you don't budget, get out of debt, and save for your future you will fail.

Sorry, someone had to tell you this.
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Don't borrow money

Taking on debt is never the solution to a problem. Develop this mindset and you've achieved another behavioral change that will serve you well.

You can't borrow yourself out of debt. This house of cards will catch up with you.

You can't borrow yourself to prosperity. Using borrowed money to invest is akin to gambling.

You can't run your life on borrowed money.

Don't borrow money.
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Happen to your life

How can you be planning for the future if you aren't saving in the present?

It’s just not possible...but I bet you already know that.

Get out of debt and save for your retirement. Don't wait and do it later. There are a lot of things in life that can and will happen between now and later. Deal with the reality of now and chart your own course.

Happen to your life. Don't let life just happen to you.


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Want vs. need

Only buy what you need and can afford, not what you want. There, the scary “change your behavior” task is done.

Many people disregard their personal reality and supplement their income with credit to obtain things they think they deserve. You only deserve what you earn, nothing more.

Don't be a fool. It takes only the swipe of a credit card to get you into debt, but it takes forever to get out.
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Annualcreditreport.com

Annualcreditreport.com is the site to use to obtain free credit reports from the three major bureaus. Don’t be fooled by other sites. This one is the real deal.

You are entitled by law to receive a free copy of your credit report from each of the three major credit bureaus.

Once you clean up your report and are satisfied with its status, go to this site every four months and request a report.
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Solicitation phone calls

When you are completely out of debt, solicitation phone calls are actually kind of fun.

I take the call and talk up the poor person on the other end about how I have no debt but have money and don’t need their card. It's fun to make them hang up on you instead of you having to hang up on them.

Get control. Don't be afraid of a ringing phone. Drive those callers crazy instead of the other way around.


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Credit card offers

I don’t have a scientific study to prove this, but it's my opinion that as your debt decreases so does the number of credit card offers you receive.

Wonder if a signal goes out to the credit card companies that says, “Stop sending. They are paying off their debts. They get it. Time to move on to easier targets.”

Refuse to participate in a game that's rigged for you to lose.
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The person in the mirror

I answer to the person who pays my bills.

That's the person in the mirror I have to tell I just loaded up a 20% credit card to take a trip or buy something I'll pay on forever because I couldn't wait until I had the money to pay for it in full.

Are you answering to the person in your mirror? You should be.
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Don't take advice from broke people

Since seven out of 10 people are living paycheck to paycheck you need to be ultra careful who you ask for financial advice.

In other words don't take advice from broke people.

Do your own homework, take control of your finances and be honest. The only reason you aren't writing down what you spend is because you don't want to face the result.
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Personal finance is not a mystery

Personal finance is not a mystery. If it is you're either over-thinking it or not even trying. Which is it for you?

Don't let finance intimidate you. It's a game of pluses and minuses. It's a game of not spending more than you make. It's a game played with simple rules on the playing field of reality.

Don't show up to the game with the wrong equipment. You'll find the equipment between your ears.
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Never forget

Never forget.

God Bless the victims and their families.
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Can I really afford how I am living?

Only you can answer this question, “Can I really afford how I am living?”

If the answer is "yes," good job. If it's "no," you know what to do. If you were smart enough to ask the question, you're smart enough to fix the problem.

Do the math. I've said it many times and I'll say it again. Calculating income minus expenses is the first step to being honest with yourself and your family.

Start being honest today.
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The first question

If you are interviewing a financial advisor the first question you should ask is, “I have debt, what should I do?” If the answer isn't to develop a plan to rid you of that debt first, you need to interview a new financial advisor.

Advisors worth their salt will have you debt-free before they ever talk to you about investing. Don't fall for advisors who put their own investment product sales ahead of your interests.
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To review

To review. Cars are to be paid for. Student loans are to be paid for. Emergency funds are to be fully funded. Retirement is to be invested in. Kids' educations are to be planned for. Homes are to be purchased with sensible loans that will be paid off. No debt is ever to be acquired again.

Questions?
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Get mad

Just think. All that money going out your door to creditors will someday be all yours.

Keep track of exactly how much is going out so that you will be ready when it all stays where it's supposed to stay, with you.

And, when you figure up how much is going out the door to interest and fees you are required to get mad. I mean really mad. So mad you resolve never again to spend what you don't have.
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Debit card vs. credit card

Use your debit card, not your credit card.

This advice is from dear friends who live the life we all hope to live someday. "Beholden to none and focused on fun" best sums up the daily routine they earned through hard work, living within their means and saving along the way.

It works folks and it really is that simple.
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Too good to be true

If you note a sense of urgency in any deal where you and your money may soon part it may fall into the “too good to be true” category. Keep your wits about you.

Con artists work very hard to separate you from what you have. They look for targets who are greedy and/or desperate. Targets must exhibit one or both of these traits before a con's trick will work.

Be careful.
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Dave Ramsey's Seven Baby Steps

These are Dave Ramsey's Seven Baby Steps:

Step 1: $1000 in an Emergency Fund.
Step 2: Pay off all debt with the Debt Snowball.
Step 3: Three to six months of expenses in savings.
Step 4: Invest 15% of income into Roth IRA's and pre-tax retirement plans.
Step 5: Contribute to college funding.
Step 6: Pay off your home early.
Step 7: Build wealth and give!

Follow the steps. They work.
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It's now your debt

If you marry someone who has debt then it's now your debt.

If you didn't know about the debt prior to saying "I Do" that's your bad.

If you are married there is no such thing as his, hers and your debt. It's is all YOUR debt and the sooner you handle it together the sooner you can move on to the life you both imagined you would have once you became an "us."
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FICO

If you resolve to never borrow money again you can remove at least one item from your list of things to worry about -- your FICO score.

If you are never going to borrow money, then who cares about your score? FICO is a "how am I doing at borrowing money and paying it back" score. There actually are people who owe no one, have a huge net worth and have no FICO score.

Which do you want to be?
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"Live like no one else today so that tomorrow you can live like no one else."

That's Dave Ramsey's signature line. Say it over and over to yourself as your inspiration.
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Warren Buffett

I once read Warren Buffett of Berkshire Hathaway fame prefers using Book Value to measure the success of his company. Book Value is simply assets minus liabilities. In personal finance this can be characterized as income minus outgo.

One of the richest guys in the world keeps it simple. How about you?

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Living the life

No one else will tell you so I will.

While others are on vacation, you will be working your second job. While others are dining out, you will be waiting the tables. While others are shopping and spending you will be scrimping and saving. But, later on while others are staring at their debts, you will be living the life you thought was unattainable.
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Wait until tomorrow

If you think you can pay for it tomorrow, then wait until tomorrow to buy it.

Too many people buy today on credit and plan to pay for it with money made in the future. Too many people think, I'll just make the payment when I have the money. Change your mindset. Change your behavior. Buy things when you have the money to pay for them on the spot... not later.
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Savers and spenders

Savers like money. Spenders like money. Now you two work it out. You both like the same thing now it’s just a matter of mechanics.
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Why hide from the kids?

Why hide from the kids how money really works?

You owe it to them to teach them how to handle their money so that when it’s their turn they don’t make the same mistakes you made.
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Being productive should not be painful

Nobody said you can’t have a glass of wine at your budget meeting.

Being productive doesn't mean it has to be painful. And, unless you're running a small country from your kitchen table it’s a matter of income minus outgo. It’s really that simple.
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Before you say “I Do”

Before you say “I Do” you better talk about money.

If having that conversation is uncomfortable I suggest you put things on hold until you can get this subject out in the open. Money problems are the number one cause of relationship problems and divorce. Nip this one in the bud before it’s a problem.
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Losing interest

Losing interest is only ok when you're watching a bad movie, not in your personal finances.
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Never risk your home’s equity

Never risk your home’s equity. Don't use it as collateral on a loan, on a HELOC, on a business venture, nothing! Your equity is sacred, treat it as such.
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Lose twice

If you use borrowed money to invest and the market goes down you lose twice -- the market value and your money. I suggest it's time to rethink that strategy.
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Recessions come and recessions go

Recessions come and recessions go. Economies expand and economies contract. The market goes up and the market goes down. Being debt-free is a pretty good anchor while all these things are occurring.
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Interest never goes on a holiday

Don’t you love it when credit card companies offer to let you skip a payment, calling it a payment holiday, then act like they're doing you a favor?

You do know not to fall for that, right?

The so called "payment holiday" only applies to you sending in the payment. Interest accumulating on your balance never goes on a holiday. Interest steals holidays.
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Read the fine print

If you can read this your excuse for not knowing what was in the credit card terms you agreed to goes out the window.

To be surprised by something you agreed to only leaves you to blame.

Read the fine print, or better yet swear off ever borrowing money again and this problem goes away.
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Why be in the majority

“If everybody else jumped off a cliff would you, too?” Where was Mom when we ran up those credit cards because everybody else was doing it?

Don't let what the majority does lead you to believe it's the right thing. Seven out of 10 are living paycheck to paycheck and have an average credit card balance of $9,000 to $10,000. The average household has nine credit cards.

Why be in the majority on this one?
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Bailouts

Remember all those bailouts?

The only bailout I'm for is the one you do for yourself. Start the process to get yourself out of debt. Take responsibility for your actions and take control of your life today.

And one more thing . . . don't spend what you don't have!
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Try living on one income

If you're in a dual income family try living on one income and saving the other. Just evaluate your lifestyle.

I once told someone to try this. Months went by and finally we ran into each other. They were hoping they wouldn't see me and I asked why. They said, "Because we failed. We had to use some of the other income and have been only able to save about 80% of it."

I assured them they passed the test.
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Talk to kids about money

Don’t let your kids make your money mistakes. Talk to them about money. It's one of the major facts of life.

Friend of mine once told me, "They don't teach us how to stay married, how to raise kids, or how to take care of our money." I had to agree, but I can only help my child with the money part. I know my limitations.
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FICO

Insurance companies use FICO scores to help them determine rates. This is absurd. This basically says those who have more debt are better drivers.

There has been little backlash against the practice because seven out of 10 people live paycheck to paycheck and have an average of $9,000 in credit card debt spread over nine separate loans/cards. I gladly will pay a little more for insurance before I go into debt.
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A clean credit report

You need a clean credit report, not a high FICO score.

Some people freakout and think if they have a low score they will never get to borrow money again.

Walk in with a clean credit report, no debt, money in the bank and say, "Do you want my business or not?"

If they say no, go somewhere else. Besides, with your new debt-free mindset why on earth are you borrowing money anyway?
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Pay off the house

If you can't fathom paying off the house you are living in you are living in too big of a house.

Pay off the house. No mortgage. It can be done, but not enough people do it.

Be weird with us. Don't have debt at all. Think about it and come on over. We have room in our club.
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You can't rent fun

Vacation is over. Now the bills are arriving. Was it worth it? If yes, how about next month, and the month after that, and the next . . . plus interest.

Once you go on a paid-for vacation you will never use credit for one again. Folks, you can't rent fun. Save up or don't go.

And if you have debt other than your mortgage you should not be on vacation in the first place.
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Three rules of thumb about cars

Three rules of thumb to remember about cars:

1. Unless you're completely debt-free and have a net worth of $1,000,000 don't buy new cars.

2. The first 25,000 miles equals $10,000 in depreciation. The next 75,000 equals another $10,000.

3. When deciding whether to repair a car add the cost of the repair to the amount you'd get for the car (even if salvaged). If you can't sell it for that amount, don't repair.
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You don't have to have a mortgage

I don’t know the exact amount but I do know my next house will cost less than the amount of cash I have to spend on it.

You don't have to have a mortgage. They aren't a fact of life.

Too many people enter retirement still paying on a house. This is crazy. It isn't an investment, it's a place to live. If you happen to make money on it someday, great, but don't rely on where you live to always appreciate in value.
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Read the fine print

Read the fine print. The smaller the print the higher the price to you personally.

Yes, I'm serious. If you are putting your name on it you better read it. If you don't want to read it then don't put your name on it.

Don't let laziness, or coaxing by the person trying to get your signature, cause you nothing but heartache (and money) later. Invest now in the small amount of time it takes to be prepared.
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Never co-sign a loan

Never co-sign a loan. If a bank that's in the loan business turned them down what makes you think they can pay it back?

Never ever mix friends or family with your money.

Do your own research on this. The dynamic it creates (or disintegrates) between you and friends and family isn't worth participating in this simple act.

Don't co-sign. There. Class dismissed.
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FICO

FICO is nothing more than a “how am I doing at borrowing and paying money back” score.

If you are debt-free your score eventually will go to zero.

Let me say that again. If you owe no one at all, you eventually will have a score of zero.

If you are a millionaire, owe no one, you will have a zero FICO score. To have a FICO score you must owe money. How crazy is this?
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Seven out of 10 households live paycheck to paycheck

Don’t take financial advice from people who are broke.

These would be the people in the cubicle next to you at work, people related to you, people you went to school with, people on the internet, people on TV, you get the idea.

Seven out of 10 households live paycheck to paycheck and the average household has $9,000 to $10,000 in credit card debt.

Why ask them for advice? Do your own work. You are smart enough.
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The budget is a living thing

Budgeting is a weekly exercise. Look at where you are and always be in control.

Too many work up a quick budget, often incomplete, and never look at it as the months progress. Then when they still have no idea where they stand financially and are spending more than they have they blame the budget they "tried" way back when.

The budget is a living thing. It needs to be attended to EVERY week.
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Dave Ramsey

Dave Ramsey (www.daveramsey.com) has written "The Total Money Makeover," "Financial Peace," "More Than Enough" and many more articles, columns, and books.

Everything you need to know is in his teachings. I love The Baby Steps, they are brilliant. Buy the books and I suspect you will buy more copies for those you care about.
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Paying off your house

It wasn't that long ago that paying off a house before retiring was common practice. We can bring back this practice if we put our minds to it.

Not paying off your house before retirement brings a huge amount of risk to your retirement peace of mind. If the home is paid for your largest monthly expense is eliminated and your retirement income needs are less.

It's a no brainer, pay off the home, then retire.
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Learn to live

Learn to live on what you make. To prosper, learn to live on less than what you make.
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A BLAST!!

You'll pile up cash when you are debt- free. And in case you were wondering . . . IT’S A BLAST!!
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The borrower is the slave of the lender

“The rich rules over the poor, and the borrower is the slave of the lender.”

Whether you agree or disagree with the source you can’t argue the validity of the point.

Look it up for yourself to see where this comes from. I'm not about to argue with this source!
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Pay more than is being asked

When you use credit you agree to pay more than is being asked.

On what level does this make sense?

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Blather on the news

If there isn't enough of something, but everybody wants it and the price goes up it’s called inflation. If there is too much of something, and not enough customers want it, the price goes down and it’s called deflation. If things are even it’s called stagflation.

If you are debt-free all this is just blather on the news.
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Conquer Debt Year Round

Economies recover. Will you still be in debt?
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Car loans

This calendar doesn't say anything good about car loans. There is no way anyone can justify using rented money to buy a depreciating asset. Just doesn't make sense.
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Taking control

Taking control of your money instead of letting it control you works wonders to get you out of debt and financially prepared for life. It also works well if you should happen upon a windfall. It gives you the correct mindset and tools not to squander your good fortune.
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The lottery

If you play the lottery 15,890,700 times you are supposed to win at least once. Or, does that mean you need to play it 15,890,700 times per lottery drawing?

Hmmm, maybe that's not the ticket out of your financial problems after all.
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All your money is yours

You'll find that once you are debt-free and all your money is yours, you get real conservative real fast when it comes to risking your cash. That's usually when you begin to pile it up. Nothing magic about it. It's just the fact it has nowhere to go but to YOU!
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It takes money to make money - Not

The phrase “it takes money to make money” wasn't coined by the guy paying your bills. Don’t use it to justify taking stupid risks.

If you need everything in a deal to work absolutely perfectly for the deal to work out for you I suggest you do one thing. RUN!!
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The financial impact a child

If you're wondering what impact having children will have on your finances do some homework. Go to the store, find out what diapers and baby food really cost. The internet can give you a hand, too. Don’t turn what is a wonderful event into a financial surprise.

With so many resources available there is absolutely no reason you should be surprised at the financial impact a child will have on your household.
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Dream home

Don’t turn a dream home into a nightmare. You must be debt-free before purchasing a new home and your total payment (including tax and insurance) shouldn't exceed 25% of your take-home pay.

In addition, never consider anything but a 15-year fixed mortgage.

If you can't follow the above guidelines you need to rethink the kind of home you can afford or save up more money for a down payment.

It's that simple.
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"Stimulus"

Regardless of their political party, politicians in D.C. aren't going to fix your problem. Your debt can only be addressed by you. Think about it. The last "stimulus" check you got from D.C. was what? $300? $600? $1000? Get off your rear-end and take care of your problem.

Nobody but you cares about you. Take control of your finances because no one else will.
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J.C. Penney

J.C. Penney. Did you know his full name was James Cash Penny? He was one of the last to get on board offering customers credit. Funny when you think about how much you owe them, huh?

Get to the point in your financial life where you don't walk into stores unless you have the cash to make your purchase.

Get to the point in your life where you never spend a dime that's not yours.

Weird? You bet it is!
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Don’t touch your 401K

Don’t touch your 401K. Don’t borrow from your future to satisfy your present. It's tempting, but let's see what can go wrong:

1. You can't borrow your way out of debt, I don't care if it is borrowing from yourself.

2. Your money stops earning money since you've taken it out of the market.

3. If you lose your job, you'll have to pay the money back or pay taxes and penalties around 40%.
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Learning from mistakes

Learning from mistakes doesn't mean YOU have to be the one making the mistake. Seven out of 10 people live paycheck to paycheck so there's plenty of evidence this is no way to live.

You see the fancy cars, boats, and expensive vacations. But, later pay attention to the unkempt house, overgrown lawn, and frowns. They all frown!

Personal finance simply means NOT spending what you don't have, nothing more.
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Credit card.

You can’t afford what you're buying if you're using a credit card.

The difference between debit and credit cards is that credit cards can only buy you debt.

Never buy anything you don't have the money for right now. If this becomes a habit then a debit card makes perfect sense since you have the money in the bank.

A friend of mine says, "If you plan on paying for it tomorrow, then wait until tomorrow to buy it."
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Manufacturers

Manufacturers are all about getting you to spend money. It's all a game so at least know the rules.

You have money. Producers have product. They want to do an exchange. There are many sellers of the same product and they will try to entice you to become a customer using advertising, sales, or special packaging.

There, you know the game, now at least play it with some common sense.
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