Underclings

Rant central...

2006-09-06T12:54:00.000-05:00

Well, it's been way too long since my last post. Talk about a hectic time. We've got FPU on Tuesday nights, volleyball on Wednesday nights, Leadership class on Thursday nights and some Saturdays, church on Sunday, and a little 3 year old whose turning 4 in January. Not to mention keeping up with Matt who's fully into his podcast, and video game playing to be able to do the podcast. I think volleyball at church is starting in October and that will be on Sunday nights. For the first time in my life, I could justify purchasing and actually using a day planner. Craziness I tell ya'...just craziness.

But, I've needed to get something off my chest for a while, and I am going to today. Just picture Office Space as I vent my frustrations with what occupies my day.

I work for a fairly large company, they're within the top ten employers in Columbia. They do rather well and rightly so. They provide the best solution out there in their industry. So, meager little me, I say that because I'm one of just over 1,000 employees, works in the advertising and marketing department for this company. We are, in fact, the creative, marketing, advertising, public relations group. We develop the face and voice of our company.

My position was created a little over a year ago based on the need for a graphic designer that had experience in web design and development. An mutual associate mentioned something about this little hispanic girl who did exactly this sort of thing at home for 2 years while raising her newborn. Of course, there's always some reservation about hiring someone like me. What I brought to the table cleared all the doubt. I have designed for print and web for over 8 years, the majority of my last 3 years have entailed web design including HTML/XHTML/CSS layouts, and basic scripting in Javascript. I was hired after my second interview on a part-time basis, as the powers that be weren't convinced fully that I, or my position, was truly needed.

After six months, I was asked if I would consider coming on board fulltime. Apparently, there was a need. After much discussion and prayer with Matt, and based on our goals for the next five years, I accepted the offer.

So here we are now. There's been a lot of transition here at work. People have left, new people have come in, and it's been quite an adventure. The guy that hired me, ventured off into a newly created division within the company and left a vacancy at the head of our department. We were anxious about the position and wondered if anyone could come in and do a better job. Well, anyone that would accept the low pay for high stress. Sure enough, someone did. This little guy from the big city of St. Louis came in and, I have to say, is extremely intelligent and on top of his game. He's an excellent marketing, no-nonsene kinda' guy. And I like that.

So if I like this guy so much, what is my basis for ranting? Well, it could be a number of things I guess. But, I'm pretty easy going and laid back. Not a lot gets to me. Though I have been a bit frustrated lately. My new boss is a micromanager. I never truly understood what this meant, until recently. The definition wikipedia gives seems to be taken from a page in my journal..."Regardless of the motivation the effect can de-motivate employees, create resentment, and damage trust." I used to love working here. It fit my personality, my skillset and it was darn nice to have some adult interaction for a change.

Lately, I have questioned my purpose in the department. My title is "Graphic Designer," yet, less of my job requires such a thing and focuses on mainly HTML. Basicly, putting into HTML/CSS what someone else has designed. This is a recent phenomena. It came with the new boss. And, I have to clarify, I don't blame the guy for wanting to make a good impression on his boss, but is there really a need to supervise every last detail of the work we do? I still don't have an answer.

I talked with Matt about my concerns because I trust his opinion and feedback. He is a manager himself so I wanted to get his perspective on the whole deal. He simply pointed out that any manager that feels they have to oversee the activity of each and every detail or action of someone under their employ is doing a poor job of management. How, I asked? Because they create an environment of low morale, resentment and instill a distrust in an employee's capacity to fulfill their duties. I think he's reading my mail. That's exactly what I've been dealing with and just haven't been able to articulate it.

So, now that I know what's going on, what do I do about it? Honestly, I don't know. I've been considering meeting with my boss to discuss my concerns, which I believe is the best option. Or, I can simply let it go and allow the situation to digress. I definitely don't want to do that. However, I'm one of those people that hates confrontation. I'm uncomfortable in that regard. I heard the other day though, that only when the pain of same is more than the pain of change, will someone be prompted toward a proactive role. Hmm. I guess I don't have a choice.

Generation P

2006-04-23T19:38:00.000-05:00

Generation P? What is that? Well, it's what Visa USA has annointed young consumers, ages 18 to 24 years of age, due to their proclivity to use plastic instead of cash or checks. If you haven't taken a look at the article on The Cincinnati Enquirer about this, you should. The article, Young shoppers prefer 'painless' plastic buying: Checks, cash continue to lose favor was published back in January, but was sent to me just last week by a co-worker who knew I'd be interested in reading it.

The young lady, 24 years old, that was featured in the article stated that she would "get so annoyed" when she entered a store that only accepted cash. She would just go somewhere else.

Howard Dvorkin, president of Consolidated Credit Counseling Services, says that consumers "spend substantially more than someone paying with cash or check." Why? "There's no pain involved when you pay with plastic."

These spending habits attribute greatly to the diminishing savings rate in America. According to the Ecomonist.com, "Not only is household saving close to a record low, but net national saving (at around 2% of GDP) is at its lowest rate since the Great Depression."

So, what does this mean for you and me? Well, I'm not sure exactly. I don't know how you spend your money. I do know that it's important to have discipline in the area of finances. I've had too many bad experiences with undisciplined money management, and quite frankly, I don't want to be broke like everybody else.

I don't care about keeping-up-with-the-Joneses, or having the newest and latest and trendiest. I just care about where I will be when I retire. Will I have the financial freedom to enjoy retirement, or will I be sporting the blue vest at old Wally World? I choose the first.

Honestly, I don't have a credit card. I have a debit card that is used only for gas. I write only one check every two weeks for my daughter's daycare. I use cash for everything else, groceries, clothing, eating out, entertainment, and so on. I've found that it is painful to part with cash, so I spend less. I'm more apt to look for a deal and get the most bang for my buck. And I like it that way.

More ramblings..

2006-04-18T17:23:00.000-05:00

I woke up late this morning. I don't work on Tuesdays and Thursdays, for now, so I've decided to take advantage of it. After getting up, I made a quick breakfast for my daughter and myself. She sat down and watched some cartoons while she ate. I watched Cold Pizza and had my coffee and toast. I think I've only watched this show once or twice, but today, I was just in the mood.

Lucky me, they brought in Carlton Fisk for an interview. They started the interview discussing his home run in Game 6 of the 1975 World Series. Every baseball fan is familiar with Fisk's coaxing of the ball as it flew into the foul pole, now known as the Fisk pole. They asked him about his emotions that day, before and right after the game-winning home run. It was great to hear him talk about it. Being a huge baseball fan myself, I remember old footage of that game and many others.

Continuing with the interview, Fisk was asked about the current steroid controversy. He mentioned that many ballplayers would have taken steroids had they been available in the 50s, 60s, and 70s . He thought about it once, but it was only a fleeting thought.

Asked about Barry Bonds, in particular, he quickly referred back to the great home run hitters of the past, Ruth, Maris and Mantle. When they were 39 years old, they averaged only 18 long balls each season. At age 39, Bonds hit 73. "You don't have to think hard about it," he said. He also talked about how many older ballplayers knew something was up back in the 90s and now with all the numbers these big guys are putting up. I find it sad.

What a great interview and great guy. Did I mention he was a great ballplayer too? I wish I could see more guys like him today. The Brock's, Bench's, Clemente's, and on and on...

I miss the days when guys would get hit by a pitch and simply take their base. I miss the days when guys cared about baseball more than their paychecks. I miss the days when guys simply played baseball.

Blue vs. Black, White vs. Black, Rich vs. Poor
Well, they indicted 2 lacrosse players from Duke today. I hope the trial comes quick and is resolved quickly too. I don't know if the guys actually raped the alleged victim, so we'll just have to see what the evidence says.

I think it's sad though something like this has divided Durham. And, of course, like everything else in America, it's come down to a black vs. white issue, rich vs. poor. Only in America.

They cry justice when the black person is a victim AND cry mercy when the black person is the criminal. It think Americans, white, black, hispanic, asian, or whatever, should see the facts of the case as fact and not as fact from a tainted point of view. Too many times we claim to observe injustices because we view the world from the lens of color. Can't we try for once to view the world from the the lens of reality?

Friday ramblings..

2006-04-07T09:24:00.000-05:00

Today's entry is going to be somewhat of a rambling more than anything. I decided to just talk about what's been going on.

Well, Matt and I bought an Xbox 360 the other day. Let me tell ya, they ain't cheap! Actually, it wasn't even a planned thing, we were at Target looking for some small things like shampoo and such and happened by the gaming section. We both noticed the 3 white boxes containing the new console, 1 core package, and 2 platinum packages. We immediately looked at eachother and wondered what our budget will allow. Funny, we went home and did our budget. As it turned out, we had the cash to buy it. So, we went back and bought it, long with a second controller and Call of Duty 2 (CoD2). When all was said and done, we spent $450.00 on this little white box with a brick for a power supply. Haha. We took it home and after completing an update on the thing, it crapped out. Just like that. Matt contacted technical support, but didn't want to waste time on shipping the thing over to where they can fix it, and then wait another 2 weeks while they fix it, then ship it back. So, he took it back and got his refund.

The very next day, he drove over to Best Buy during his lunch break and bought one. They had like 40 consoles! He went home and set it up, and voila, it was game time! I think I've played more than he has though. I love to play video games. Always have, since Nintendo. Matt traded in our old Xbox and accessories for a DVD remote and Ghost Recon: Advanced Warfighter (GRAW). We realized that it was cheaper to pay $20.00 for a DVD remote, than to buy a $150.00 DVD player. Our Xbox plays games, CDs, and DVDs. It's our little media center. Now, Matt wants to buy a Windows Media Center so he can network it with the 360 and our computer. I think that'll have to wait a bit. A good bit. He's such a geek.

Anyway, I've been playing CoD2 and am just having a blast. I love these shooter games, and, I just happen to be good at them. This one is set back in WW2 and you have to play different allied soldiers and work your way to US forces. The graphics are amazing, and the game play is pretty good. I think the new 360 controllers are sleek and the translation of game elements into the controller are great. Although, it's a bit tough switching from CoD2 to GRAW to Halo 2. Buttons and triggers do different things, and man, it takes a bit to get the hang of it when I switch over to a different game.

Last night, we played GRAW online with some of Matt's buddies. I think this was the greatest feature of Xbox Live and most especially, with the Halo 2 environment. Sure, you run into the little immature punks who love to talk to smack, but man, it's a lot of fun to get together with the same people all over the world. I get to play Halo 2 with my brother and sister, who are 2,000 miles away, or with some of Matt's buddies who live 2 miles away. Building communities, albeit gaming communities, but that's something that just watching television or listening to the radio can't do.

Let the ramblings continue. Ultimate Fighter 3 premiered last night. We love the show. We love UFC. Tito Ortiz and Ken Shamrock are coaches this time around, and I think this'll make for some good drama. That coupled with good fighting, good looking guys, and you have a great show. In my opinion of course. What do you expect? I am a girl after all. Yeah, I know, a girl who loves video games and UFC. It's true. I also love sports, baseball, football, hockey, soccer, and the list goes on and on. Oddly enough, I hate shopping. But, we can talk about that another day.

What the heck?

2006-04-01T21:14:00.000-06:00

Okay, so anyone that keeps up with current events online or tv or, whatever, is familiar with the new illegal immigrant legislation recently passed by the House, which would make illegal immigrants felons. There have been protests all over the country, California, New York, Oklahoma, and God knows where the next one will take place? I know I've kept this blog comfortably within the realm of personal finances, but sometimes, I feel compelled to write about something else. Heck, it's my blog anyway and, well, I just need to vent a little. Or a lot.

I'd like to begin with the fact that I am a hispanic female. I am first-generation American. My parents emigrated from central Mexico in the early 1970s to southern California, where I and my three siblings were born and raised. Much has to be said about the opportunities this great country America has to offer to foreigners. It's the land of the free. Home of the brave. Where a man, or woman, has control of their destiny and possibly fortunes. I love this country!

My parents worked in the fields when they first crossed the border. They busted themselves ragged daily to give their children the best this world can offer. But, they never settled. They worked their way up the ladder slowly, from the fields, to the factories and finally into the comfy, air-conditioned offices they sit in today. My parents earned their way in this country, and still do. They have taught their children the value of hard work and respect. Respect for themselves, their work, and family.

I have to say, that the people crowding the streets of this great country protesting the proposed law making it a felony to be an illegal immigrant is, in my opinion, a disgrace to every American citizen. The cries of "If you hurt immigrants you are hurting America," or "We are your economy," or "Everyone deserves a better life" completely contradict anything they do. To come to this country, you have to obey it's laws. Like them or not, they are the backbone of this country.

Immigrants have been flooding into this great nation for hundreds of years, legally. Why do we have to make exception to that rule? And how does a law pertaining to illegal immigrants, clear violators of law, diminish their pursuits to a better life? They don't. By attempting to live above the law, they diminish the pursuits of the immigrants who come here legally.

Don't get me wrong, I want these people to have a better a life, to give their children what my parents gave me. All I ask is that they do it legally. There a thousands of immigrants who want to be here, and go through the proper channels to make it happen. They don't take shortcuts and they don't make excuses. Should this land of opportunity deny them the right to have a better life because others took a shortcut and are already here? No!

I am proud of my parents. I am proud of my heritage. But, if you want to come to my country so bad that you are willing to break the law, please, show some respect and put that Mexican flag, Puerto Rican flag, Venezuelan flag, El Salvador flag, Venezuelan flag, or whatever piece of cloth down, and pick up the stars and stripes. Because that is the country you are in where you are given every promise and every opportunity to pursue life, liberty and happiness!

Article from MyTMMO newsletter

2006-03-28T21:20:00.000-06:00

Got the Gazelle Gazette from MyTMMO (My Total Money Makeover) today and I saw an article that I thought might be of interest to some of you.

New Score, Same Game
By now, you've probably heard of the new Vantage credit score that should be available later this year and will compete directly with the FICO score.

The product of the Equifax, Experian and TransUnion credit bureaus, VantageScore is formatted like the grading system you had in school. An A is a good score and an F is bad (which means paying more in interest).

But make no mistake, this is not some breakthrough way to gauge your success in life or money. "It's a new recipe, but the same old ingredients," said Jean Ann Fox, director of consumer protection with the Consumer Federation of America in Washington.

The FICO is made up of a number of factors. It considers your credit history (35% of the score), your level of debt (30%), the length of your credit history (15%), new credit (10%) and credit types (10%).

The credit bureaus have not yet released the composition of the VantageScore system, but say it's composed of your credit performance in the last 24 months. Regardless of its makeup, both scores simply mean, "I love debt so much, I want to get into it and stay there forever." These scores do not mean you are winning with money.

What if you have no debt? Then your score will not be very high and thus indicate you are not doing well. But guess what? If you have no debt, that's the real way to know you're succeeding! The money you bring home is for you to spend, invest and give; not to send to credit card and mortgage companies.

Another myth spread by society is that you need credit (and a credit score) to get a mortgage, which is ludicrous. If you live in your apartment and pay your rent on time or early, you're fine.

When you get a mortgage, go to a lender who offers manual underwriting. Manual underwriting is the process used by a lender to look beyond the FICO score to your unique financial situation. Churchill Mortgage is a great place to get quality manual underwriting for your mortgage and is one of Dave's Endorsed Local Providers.

You don't need to maintain a credit score to succeed in life, but keeping it accurate can help to keep your insurance premiums low and can also help you when getting a new job. You can check your credit for free once a year through the Annual Credit Report. Make sure to do this to prevent identity theft and also to report inaccuracies.

By paying off bills and living debt-free, your credit score will become obsolete. That's a bad thing ... for the creditors!

Source: Kiplinger's Personal Finance
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My TMMO Gazelle Gazette Tuesday, March 28, 2006
My TMMO (main site)

What is financial independence?

2006-03-28T16:17:00.000-06:00

Okay, so I have been following several blogs and podcasts about personal finances for the last year. While this makes me no expert on specific areas of personal finance, I have learned a lot.

Recently, there's been a discussion on a forum that highlights the methods of achieving financial independence via real estate investing. The idea is simple, take care of your business first and then use as much leverage as possible to increase your income potential. The main point I get out of this is that your day-to-day job won't make you as much money as real estate. Real estate can generate a greater income with less work and time thereby making you financially independent. Although I hope to do some investing in this area, I disagree with the basic premise of leverage and how it contradicts independence.

Let's start with this idea of financial independence. According to dictionary.com, independence is defined as:

The state or quality of being independent.
Sufficient income for comfortable self-support; a competence.

If you read further, you'll see the essence of independence: "freedom from control or influence of another or others."

Now, let's take a look at the definition of leverage: "The use of credit or borrowed funds to improve one's speculative capacity and increase the rate of return from an investment, as in buying securities on margin." In real estate, leveraging would require brokers or lenders. You can take $20,000 and buy two properties, at $10,000 each, that are worth $100,000 each. As a result, you would be taking out two-$100,000 mortgages with only $20,000. The income generated from those properties can either make money, or lose money. I hope the first.

There are risks involved, of course, as with any other type of investment. The property can depreciate, rent is paid late or not at all, and so on. This has great income potential, and the idea is to make so much money as to make your day job obsolete. When you no longer require this job, you have become financially independent. Or, have you?

See, this is where I disagree with most people. I don't believe this is truly financial independence. According to our definitions above, leverage requires brokers/lenders. How can one be independent with this need? Sure, you can make more money, but are you independent? No. You have two mortgages, so you owe money to a borker or a lender.

So, then, what do I think financial independence is? It's simple, no longer requiring any services from outside sources to generate income. How can that be? Everyone requires some type of service don't they? Sure. Most people use 401ks and IRAs to generate income at retirement. The main thing to look at is what does it cost you? 401ks and IRAs cost you only what you contribute, and you don't owe anymore than that. If you have paid for real estate, you don't owe a broker or a lender a dime. If you sell it, you can keep every penny of that (if you've lived in for at least two years). What an idea?

Are you a Dave Ramsey geek?

2006-03-25T13:30:00.000-06:00

An ode to Jeff Foxworthy and lighter side of personal finances, Dave Ramsey style. You might be a Dave Ramsey geek if:

You get a Visa card in the mail and run away screaming "Cheeetaahhhhhhhh!"
You find your kids hiding in cupboards, under the bed, or in closets thinking that their next.
You avoid the dog food aisle so you don't see the Alpo bag.
People think "Dave says.." is a new version of Simon Says.
People think you're on a new fad diet, beans and rice, rice and beans.
You get a headache when people talk about the bonus points and rewards they get from their credit cards.
You sign up for satellite radio so you don't miss a day of the Dave Ramsey Show.
You bust out in tears of joy when you hear Mel Gibson yell "freedom!"

Are you a Dave Ramsey geek? Let me hear it!

The ABCs of Creative Frugality

2006-03-22T22:06:00.000-06:00

For all those frugal people out there, this one's for you. I came across this small post based on Amy Dacyczyn's Tightwad Gazette book series that was quite enjoyable. She once wrote that tightwaddery, her term for being frugal, without creativity is deprivation. Boy did she nail it.

The post continued, that when frugality "frugality is simply a matter of what you can't do or can't have, it becomes a burden and a source of resentment." You can make it fun. however, by "creatively replacing expenditures with low-cost alternatives."

Frugality, The Game
The object: to see how little you can spend to get the same results.
The winner: the one who can get the most enjoyment while spending the least amount of his/her family's hard-earned cash.

Are you game?

Here are some tips, Dacyczyn's ABC's:
Adaptability and Adventurous. Make do with what you have until another option comes along. Any family that has had to make it on one income knows that it is quite an adventure.

Care and Consideration. The most precious things in life are the intangibles that can't be bought or sold. Cutting back should never include little acts of kindness that bring happiness and joy to those you love.

Economical. Look for out-of-the-ordinary ways to eliminate waste and get the most out of every dollar.

Individualism, Ingenuity, and Investing. Develop money habits that are good for your family. These may go against what culture deems "good". Look for ways to get all you can out of every dollar. Put those saved dollars to work for you.

Resourcefulness. Fully examine available optios before spending money mindlessly.

Teamwork, Time Management, and Trade-Offs. Frugality works best when everyone works together. Thrifty people budget their time as wisely as their money. Sacrifice less important things for those of higher value.

Value and Vigilance. Refuse to get less than full value for time and money you invest in any purchase. Persistence is a slow process with great rewards.

You and Yesterday. Decide what is valuable to you. This will determine your goals and will make what others think irrelevent. Forget the mistakes of the past and use them to move forward.

Thank Goodness for Insurance...and An Emergency Fund

2006-03-18T00:10:00.000-06:00

In case some of you have missed the news about the tough weekend us midwesterners experienced, well, it was a rough weekend. According to the National Weather Service, an estimated 100 twisters touched down this weekend from Oklahoma to Illinois, killing 10 people. I don't think I've ever been so glad for Monday's arrival.

I live in Columbia, Missouri, which is between Kansas City and St. Louis on Interstate 70. Just 15 miles north of us, a sleepy town called Renick was devastated by a tornado as my husband, daughter, mother-in-law and I huddled in the basement of her home. It was still daylight and we watched handball-sized hail slam down onto the earth, her home, and our cars parked out on the street. It was the loudest, most terrifying thing I have witnessed to date. These balls of ice were hitting the ground so hard, they bounced off roughly 8-feet into the air and back down. Only by the grace of God was our city spared. Our prayers go out to those families who lost what is irreplaceable.

We have been in touch with friends in the area and are glad to hear that they are okay. Their homes, and ours, however, didn't fair so well. We just had an adjuster at our place yesterday afternoon to survey the damage. Just as we thought, the roof will need to replaced, the vinyl siding on the entire north side of our house will need to be replaced, and two-thirds of our screened-in porch will need to be redone as well. Thank goodness for insurance.

Speaking of insurance, there is a little matter of a deductible. I have to say that it was one thing we didn't have to worry about. My husband and I had this idea in our head that our deductible was $1,000, but, after reviewing our policy information, it is only $500. Phew. We sat down last night and were watching television when I thought about how many folks, that were given the same news, or worse, about their homes, had no available cash to meet the deductible. I felt horrible for them. But, at the same time, I felt a peace, because we have the money. The first baby step in the Dave Ramsey plan is to save $1,000 in an emergency fund. I'm glad we have it. And all I can say is thank you to God and thanks to Dave Ramsey.

The NIL Principle

2006-03-13T22:28:00.001-06:00

You might be thinking, what the heck is the NIL principle? It's quite simple actually and has to do with spending, or the control of your spending. In order to succeed financially, you have to control your expenses. You have to change your behavior so that you are not spending everything you make. And, it all starts with the NIL principle.

N-I-L stands for three words: necessities, investment, and luxury. Before you spend any money, that money you worked so hard to earn, classify the item you wish to buy into one of those three categories. In order to this correctly, you have to first define what fits into these categories.

Necessities are essential to our survival, in other words, they meet our most basic needs. Things that fall into this category are food, shelter, clothing and transportation. In Maslow's Hierarchy of Needs, this falls into the lower level needs. Without meeting these needs first, one cannot progress to the higher levels of success. Be honest about what is truly a necessity and what is not.

Once the most basic needs are met, the next level of the NIL principle is investment. An investment is something you put money into that will pay you a dividend. People quite often mistakenly classify items as investments. Anything that requires constant funding with no return, is not an investment. Real estate and mutual funds are investments. Your home is not an investment, it is shelter, therefore a necessity. It is costing you mortgage payments, insurance, property taxes, furnishing, utilities, etc.

The last level in the NIL principle is luxury. Once the basic needs are met and you are investing, you can reward yourself with some luxury purchases. This can be anything you want, a luxury car, a home theatre, a cruise to the Bahamas, or whatever you would classify as a luxury item.

Great financial success can be reached be following this basic principle. Use it everywhere you go and with everything you buy. Make it a habit and you will succeed.

Is the NIL principle something you can apply to your financial planning? If not, what suggestions do you have that would result in financial freedom and success?

Forget About How Much You Make and Focus On What You Keep

2006-03-13T22:07:00.000-06:00

People always talk about how much they make, either annual salary or commission. In America, we view successful people as those who make a lot of money. The more you make, the more successful you are. Well, we're missing the point.

The income these people bring in does not tell an accurate story of their success. There are numerous people in America making a six figure income. It's important to remember though, that success is not determined by how much one makes, but by how much you keep. You can make $30,000 a year and if you keep $15,000, you are wealthier than someone making $300,000 and spending $305,000. What you keep determines your success.

It's quite common to find these high income earners overextending themselves financially. They are targeted by financial and credit institutions because, statistically, they are more likely to spend more money than lower income earners. As a result, these people often declare bankruptcy and/or lose everything.

So, whatever income spectrum you may be in, focus on this: your success is determined by how much you keep, not how much you make.

What are your thoughts about how income determines success in America? Do you keep more than you spend? I'd love to hear what you think.

Priorities and family

2006-03-12T15:06:00.000-06:00

So, my husband and I have been zeroing in our debt and are on track to eliminate all debt, except the house, in 2 years. We are pretty excited about our progress and are fortunate to have surrounded ourselves with friends and family that fully support our financial endeavors.

Pretty soon, I'm going to start working fulltime which will enable us to attack our remaining debt. God has just been pouring his blessings on us, which is consistent with scripture. In Malachi 3:10, "Bring all the tithes into the storehouse so there will be enough food in my Temple. If you do," says the LORD Almighty, "I will open the windows of heaven for you. I will pour out a blessing so great you won't have enough room to take it in! Try it! Let me prove it to you!"

I've been talking with my family, who lives 2,000 miles away, about trips we're planning on taking out there. My little sister is graduatting from high school in June and my best friend is getting married in October. After looking at our budget and debt snowball, all three of us, me, my husband and daughter, can go to one event. Our thoughts are that we will go to the graduation and only I will go the wedding in October. It's what will be best for us financially.

So, I relayed this to my dad over the phone and he gave me some advice. "You know, you have to just think positively and the money will be there." Although I love him, I respectfully disagree. I just don't think he understands our concerns. See, we have the money to take these trips. The only thing is that, for every trip we take, our debt repayment gets pushed back. We've focused so much on getting Sallie Mae out of our house that these trips almost don't seem worth it.

Don't get me wrong, I love my family and don't place money before them. But, my priority lies in my family. That is my husband and my daughter. Next to that is my parents and siblings and so on. We have made it a family goal that we will free ourselves from the shackles of debt. And, like most things of value, this will take some time. It's so easy to go into debt, and much harder to get out. But we intend to do it sooner rather than later. And some people just don't get that. My parents don't get that.

A lot of people are perfectly content in their financial squallor. We are not. Some people are content with making minimum payments. We are not. Some people think debt is good. We do not. Everyone has a choice when it comes to their financial progress, or lack of. We have decided to leave a legacy and change our family tree.

In response to "Putting money in its place"

2006-03-08T14:36:00.000-06:00

Back in November, I said I was going to respond to an article on the Kentucky Post by Kevin Eigelbach, called Putting money in its place. Well, it tooks some time, but I finally have a bit of time to write a proper response to Kevin's bit (thanks to an ankle sprain at my volleyball game last night). So, here we go.

"It's because I wonder what's Christian about financial planning...Remember that Jesus advised his followers to sell what they had, give the money to the poor and follow him." Kevin, that is just the tip of the iceberg. Jesus commands us to love one another as we love ourselves. To those who place things such as money, he commands to give that up, and follow him. "No servant can serve two masters. Either he will hate the one and love the other, or he will be devoted to the one and despise the other. You cannot serve both God and Money." Matthew 6:24. Nowhere in scripture does God say that his followers have to be poor.

Kevin points out that God "...told people not to worry about what they were going to eat or wear, but instead spend their time thinking on God's kingdom," and I agree. It is not, however, a command to sit idly by and do nothing in regards to work or making a living. Actually, man was given the "earth and everything in it" to take care of and maintain. In essence, we were commanded to work the land. Yes, God will provide what we need, but we have to do our part as well. This idea is comparable to that of prayer. We don't pray to make God aware of our needs, but, when we are operating within God's will, we share our needs to God. He knows what we need, but, many times, we don't. It is for our benefit, not God's.

Kevin continues his argument that to trust in God for our provisions precludes any planning on our part. He couldn't be more wrong. Did you know that money and handling money is found in scripture 800 times. 800 times! That's more than any other topic. Maybe, God has something to tell us about how we are to handle God's provision, money. Let's take a look.

In Proverbs 6:6-8 God says to "Go to the ant, o sluggard, observe her ways and be wise, which, having no chief, officer or ruler, prepares her food in the summer, and gathers her provision in the harvest." Do as the ant does and store up provisions to nourish your family in troubled times. Save.

In Proverbs 22:7, God says that "The rich rules over the poor, and the borrower is servant to the lender." We are commanded not to borrow.

In Proverbs 21:10, God says that "In the house of the wise are stores of choice food and oil, but a foolish man devours all he has." Again, we are told to save.

In Proverbs 21:5, God says that "The plan of the diligent lead surely to plenty, but those of everyone who is hasty, surely to poverty." This one is quite obvious, plan. It doesn't say to be poor.

Alright, one more. In Luke 14:28-30, God points out "For which of you, intending to build a tower, does not sit down first and count the cost, whether he has enough to finish it, (29) lest, after he has laid the foundation and is not able to finish it, all who see it begin to mock him, saying ‘This man began to build and was not able to finish’." You can't build a house without plans.

"It makes me think that when we die, God's going to give us a test on how well we used what he gave us." Well Kevin, I hate to break it to you, but that is the case. One day, we will all stand before God and be held accountable for everything that we were given and how we handled that responsibility. To some it's a frightening thought. Many dismiss it. We'll see.

"It all makes me feel that our problem is we have too much, not too little...I don't often hear people say this in church, however. Church people seem just as driven to earn more and acquire more things as everyone else." I don't know if I'd define it as driven more so than being obedient with God's provisions. To him that much is given, much is required. God will only bless those who are obedient.

"Bring all the tithes into the storehouse so there will be enough food in my Temple. If you do," says the LORD Almighty, "I will open the windows of heaven for you. I will pour out a blessing so great you won't have enough room to take it in! Try it! Let me prove it to you!" Malachi 3:10

And Now You Are One

2006-02-28T10:07:00.000-06:00

Matt and I have been reading up a lot on personal finances and marriage. One of the top reasons for divorce in America is money problems and fights. I think it's an area of concern for couples. It's something they should talk about and, most definitely, agree on. Honestly, my relationship with Matt has been great. We've always been communicators about most things in our marriage, except for finances.

Whithin the first year of our marriage, we had medical bills, student loans, credit card and car payments and we just didn't want to talk about it. I was content with him handling the money because I could ignore it. It didn't create a lot of tension between us, but I could see that it bothered him whenever we went to the grocery store or had to buy things we actually needed. I hated seeing that look on his face. It was a look of frustration and disappointment. I used to feel guilty about spending a dime.

Fast-forward to today, the story is completely different. Matt and I sit down every month and do our budget. It's something we rather enjoy because we tell our money where to go and it's a liberating thing. His frustration and disappointment is gone. And my feelings of guilt are gone as well. All of our expenses are planned now.

We're scheduled to talk at a marriage class at our church next Monday, so Matt and I have been talking about our past emotions and experiences and where we are now. How can we better help others that were in the same or similar situation in their marriage? How can they avoid the pitfalls of debt that we have climbed out of?

In the process of preparing for our talk, I came across an article on The News Leader called Financial Partners: 10 helpful tips on avoiding money problems in your new marriage. I started reading it because the 10 tips actually came from Dave Ramsey and I love the guy for what he is doing for people. A lot of the tips were helpful but didn't go into much detail. Probably to keep her article within her requirements, and partly because she hasn't followed Dave so she's not aware of the nuances within his principles.

So, here are the 10 tips to help you avoid money problems in your new marriage, or not new for that matter:

1. 100% Disclosure.
"You must tell your spouse everything about your debt, income, financial strengths and weaknesses," Ramsey said. "No secrets allowed." This is not poker. You've got to lay all your cards out on the table or you will lose.

2. Joint Agreement.
"Be in agreement on major money issues, like debt, savings and budgeting," Ramsey said. You are a team and can't win unless you have a common goal.

3. Practice Makes Perfect.
"Pretend like you're married on paper so you can get some of the money fights out of the way," he suggested. Make a practice budget.

4. Zero Down Payment.
Don't pay bills for people you're not married to. "This causes undue strain on the relationship before you're married," Ramsey said.

5. American Dream On Hold.
Wait at least a year before you buy a house. "..you don't know each other well enough when you're first starting out. Give yourselves a year to find your financial equilibrium and come to a point where financially you're functioning as one."

6. Share and Share Alike.
None of this you and me, it's we. Open a joint checking account. "This forces you to convert 'her bills' and 'his bills' into 'our bills' and encourages unity and communication in the marriage," Ramsey said. "I know very few financially successful people who have separate lives and separate checking accounts. If you want a life of your own, you shouldn't get married."

7. Another Meeting.
When you get married, have a monthly budget committee meeting. "Spend your money on paper on purpose and in agreement," he said.

8. Saving for A Rainy Day.
Remember that your first step in planning your financial future is to have an emergency fund. If you have debt, start a baby emergency fund of $1,000.

9. The Big Pay Off.
When the debt is gone, build up the fund to cover 3 to 6 months of living expenses.

10. Play the Percentages.
If your emergency fund is fully funded, "set aside 15 percent of your income toward retirement," Ramsey said. If you have kids, start a college fund when they are born.

Teaching Your Kids About Money

2006-02-23T22:08:00.000-06:00

In today's culture, I think it is important for parents to teach kids about money. I know most parents don't have a clue how to reach their kids when it comes to drugs, sex, and most especially, money. Still, for those of us that have even an inkling of good financial habits and behavior, take the time and make the effort to teach your kids. They're not going to learn how to do it school, on television or on the Internet. Well, at least not the right way, anyway. So, if you're wondering where to start, here are four things that kids need to learn about money.

1. They need to learn where money comes from.
Money comes from work. Our little girl earns commission for doing her chores. She does not get an allowance just because she exists. We set up a dry erase board with a list of chores for her. When she does her chores, they get checked off and at the end of the week, she gets her commission. Give your kids some chores and attach a money figure to them.

2. They need to learn how to save.
Now that your child has the money they earned in their little hands, disperse it into three envelopes: saving, giving, and spending. With that chore list, our daughter's maximum commission (weekly) is $5. In these envelopes, she places $2 into saving, $2 into spending, and $1 into giving.

One thing we look forward to doing when our daughter is old enough, is the 401MD (mom and dad). We will tell her that she will have to buy her own car. Whatever she saves, we will match it. But, here's a tip, set a limit on the amount that your child saves or be prepared.

3. They need to know how to give.
Whether you attend church or are involved in charitable organizations or events, it's important to teach your kids to give. Not to make them feel better, but to build their character. As a Christian, we give a tithe (tenth of our income) to our church. We'd like our daughter to learn that it is important to give a little of what we have been given to help others minister to those in need.

4. Let them spend their money.
Well, this one's easy, if they're anything like us, right? The point of teaching them the first 3 things is so they appreciate where money comes from and can be smarter about how they spend. They can spend their money, guilt-free. That's what it's for after all.

It's been great to see our daughter learn good money management skills. It is our responsibility to teach them the skills they need in life, and money is no exception. We had to learn the hard way, but, God-willing, she'll be prepared.

What Is a Healthy Financial Plan?

2006-02-23T11:00:00.000-06:00

You've heard me talking about the importance of financial planning and management. Without planning and good money management, you won't fair well come retirement. I for one am not depending on the government to take care of me when I'm older. So, in this post I'm going to go through the major components of a healthy financial plan to help you get on track with your money.

There are 10 elements or components to a healthy financial plan:

Written Cash Flow Plan (Budget)
Will and/or Estate Plan
Debt Reduction Plan
Tax Reduction Plan
Emergency Funding
Retirement Funding
College Funding
Charitable Giving
Teach Your Children
Insurance (5 Types)

Written Cash Flow Plan
I will go more in depth with this component than any other because I believe that a cash flow plan or spending plan or budget, whatever you want to call it, is crucial to financial planning. If you don't know your inflow and outflow, you can't properly save and spend and reduce debt. It's just not possible.

There are many reasons people don't have a cash flow plan: 1) people assume they won't be able to buy things they want, 2) people, in marriage relationships, have been abused by them, emotionally, 3) the plan they made didn't work, and 4) fear, people don't want to see where they're at.

Sure, sometimes a cash flow plan doesn't work. This is due to 4 factors: 1) we leave things out, 2) we overcomplicate them, 3) we don't actually do it, and 4) we like the idea of it but don't actually live it.

I've included a link to a pdf of the cash flow plan that we have been using for the last year or so to give you a solid foundation. You can adjust it to fit your specific situation, but please, do it.

Cash Flow Plan

Will and/or Estate Plan
Over 70% of Americans die without a will. If you have a spouse or kids, you need to have and should have a will. An estate plan would be needed if your net worth is near $1 million.

Debt Reduction Plan
Being a Dave Ramsey listener, our debt reduction plan consists of the debt snowball. How does the debt snowball work? Easy. Make a list of your all of your debts, excluding you house, and list them from smallest to largest. You'll hear about various plans that list debts by interest rate or from highest to lowest. All of these plans work, mathematically, but the debt snowball includes the element of human emotion.

After you list your debts, from smallest to largest, include the minimum payments beside them. Once they are all their, focus on that debt at the top of your list and put as much of your money into that one, while making the minimum payment on the others. Once that first debt is crossed off, roll over that money to the next debt, and so on. By the time you reach the last debt, you'll be hacking away at it with more momentum. The idea is for that snowball to get bigger and bigger as it roles on and eventually, it will become an avalanche.

Tax Reduction Plan
Okay, so you might think this one will deal with some tricks and maneuvers to reducing your taxes. It doesn't. If you want to have control over your taxes, vote.

Emergency Funding
A good emergency consists of 3 to 6 months of living expenses. It is your guard for those Murphy moments in life. Back in the day, this was known as the rainy day fund. In the Dave Ramsey plan, he has what he calls baby steps to financial freedom and peace. The first step is to save $1000 as a starter emergency fund. The second step is to do the debt snowball. The third step is to then fully fund your emergency fund. If you don't have that fund, you will be more likely rely on Visa or Mastercard for emergencies. You know what? They're banking on it.

Retirement Funding
If you have the ability to participate in a retirement program like a 401k, 403b or 457 at work, do it, regardless of a match. Don't forget about IRAs and SEPP, if you are self-employed. If you have debt, do the minimum investing and tear down that debt. Baby step four, once all the debt is gone and you have a fully funded emergency fund, max out your retirement with 15% of your household income.

College Funding
This is baby step 5 and should initially be done with an ESA (educational savings account) and is sometimes known as the Educational IRA. Currently, you can save up to $2000 per year, per child after tax, and it grows tax free.

Above the ESA you can invest in an UTMA or UGMA (Uniform Transfer (Gift) to Minors Act) with good mutual funds. 529s are also available in most states, but only use those that allow you to freeze your investment in mutual funds with long track records. 529 plans that are age-based have a low return.

Charitable Giving
As a Christian, we tithe to our church. A tithe is a tenth of your income. There is no such thing as a 5% or 15% tithe. If you tithe, any amount less or more than a tenth is an offering. There is a difference.

Aside from the tithe, consider giving to non-profits and other charitable organizations that you believe in and would like to support.

Teach Your Children
Make it a point to teach your children good money habits. Remember, kids do what they see not what they hear, so be a good example for them and teach them along the way.

Our daughter is young, only 3 years old, but she, unlike most kids, gets commission for chores. She does not get an allowance. It's important for us that she understands that money does not grow on trees. Work equals money. No work equals no money.

Insurance
I'm gonna talk about 5 types of insurance that every household should have: 1) Life Insurance, 2) Health Insurance, 3) Disability Insurance, 4) Auto Insurance, and 5) Homeowners Insurance. All of these types of insurance serve one purpose, to transfer risk.

Life Insurance
Life insurance serves to replace income due to death. There are two types of life insurance: Term and Cash Value (this consists of whole, universal, or variable). For most people, term-life is the best option. Rarely is a cash value policy a good option. Why?

With term-life you can get a policy worth up to $250,000 and pay only $12 per month. For a similar cash value policy, you'd pay around $150 per month and only receive the face value of the policy. The insurance company keeps the cash value. It is a bad idea to mix your life insurance with some type of investment plan. Insurance is not an investment.

Recommendations for a term-life policy are about 7 to 10 times your income, if you are the main income source. Also, don't fall for the gimmick child life insurance. Those policies are cash value plans that do no good. Children only need enough for burial expenses.

Health Insurance
If you have health insurance through an employer, great. For those that don't, get it. Get a policy that has a high deductible so that your monthly premiums will be as low as possible. Open a HSA (Health Savings Account) to cover the cost of the high-deductible as well as any other medical related expenses like co-pay, medicine, doctor fees, etc. If you are self-employed, you are also elegible for an MSA (Medical Savings Account).

Don't believe the myth that life insurance is a permanent need. It's not. If you have a healthy financial plan, twenty years from now when your kids are grown, your mortgage is paid off (baby step 6) , and you have substantial investments, you have become self insured.

Disability Insurance
The purpose of disability insurance is to replace lost income due to short term or permanent disability. If you become disabled and can't perform the jop you were educated or trained to do, this is a must. You can buy coverage to age 65 or for life. But, if you have a fully funded emergency fund, you don't need short-term disability.

Auto Insurance
Here, it's important to remember that a fully funded emergency fund creates options. You will be able to increase your deductible and reduce monthly premiums (like the health insurance policy). Carry adequate liability and consider dropping your collision coverage on older cars.

Homeowners Insurance
The big thing to remember here is to make sure you have replacement cost insurance. I think that one is self explanatory. If your house is destroyed, you receive the full replacement cost of your home. Make sure you keep that updated. If your house increases in value, increase the replacement cost.

"Don't Buy Stuff You Cannot Afford"

2006-02-21T15:58:00.000-06:00

I saw this clip at church a couple of weeks ago to emphasize the service topic: The Good Life-Financially. SNL was definitely having some fun with current consumer trends.

Take a peek and let me know what you think of it. I think they have something there.

I Don't Agree with the Dave Ramsey Philosphy, I Use My Credit Cards Responsibly

2006-02-21T10:32:00.000-06:00

Okay, so you know I am a fellow Ramsinian. I believe in what Dave teaches and I love his Dave-isms. I also love that I no longer have any credit cards and I feel more financially free than back when I was living my parents and they paid for everything. But, every once in a while, I'll run into someone who doesn't think that credit cards are bad because they use them responsibly. They pay the balance off every month and they get airline miles, cash rebates for vehicles, as well as the cash rebates at the year's end. So what's so bad about that? Well, let's get down to it.

What is responsible? Dictionary.com has several definitions for responsible, one of which is the characterization of good judgement or sound thinking. I feel that the issue begins with income, or the money you have. Good judgement and sound thinking begin there. Why are credit cards needed if you have the money in the first place. You're obviously able to pay off the balance monthly, why not use your own money? At least then there is no possibility of late payments, annual fees for paying off your balances, or a statement being lost in the mail. It hasn't happened to you yet? Well, I suppose it could never happen right?

Now, I posed the question: Why do you use a credit card if you have the money in the first place? I can't get airline miles otherwise. Or cash rebates. Okay, I'll give you that. Those are seemingly nice perks to using plastic. But, now, let's do the math.

General Motors offers a 5% rebate, so let's say you're getting a $4,000 rebate. In order to get that $4,000 rebate, you had to spend $80,000 to buy a vehicle that will lose $3,000 of its' value the minute you drive off the lot. Does that equation present good judgement or sound thinking? Far from it.

Dunn & Bradstreet conducted a study that showed that consumers spend, on average, 12% to 18% more money when using credit cards. Those annual cash rebates come in at a 1% to 5% return. That's pretty dismal and again, not characteristic of good judgement or sound thinking.

While folks think they are taking advantage of the perks these cards offer, there are people like me that don't like to play games where we don't make the rules. These credit card companies know what they are doing. Unfortunately, there are a lot of people who are buying it, hook, line, and sinker. Are you one of them?

Developing the Leader Within You

2006-02-18T10:50:00.000-06:00

After listening to Dave Ramsey's radio show the other day, I decided to pick up a book he highly recommended. The book is called Developing the Leader Within You by John C. Maxwell. I figured, since Matt and I will be leading the FPU courses at our church, this would be a good precursor to the whole leadership thing. However, having heard of the book at work prior to this, I was rather excited about it.

While I'm not finished with the book yet, I decided to write a bit as I go. Currently, I'm on the third chapter, and while there is no true groundbreaking content, yet, the information is quite simple and applicable.

To begin with, Maxwell examines prior definitions of leadership so we can better understand his approach. Although many have concluded that leadership is attributed to a position, rank or title, he determines that leadership is quite simply influence, or the ability to obtain followers. "He who thinketh he leadeth and hath no one following him is only taking a walk." I think that's one of the funniest yet accurate statements regarding leadership I have ever heard.

Some of the greatest leaders of all time consist of Adolph Hitler, Jim Jones, Jesus of Nazareth, Martin Luther King, Jr., Winston Churchill and John F. Kennedy. Although their value systems differed, one thing remained, they had followers.

Maxwell, in the first chapter, states that once people accept that leadership is influence, they can better understand how to develop their leadership abilities. How do we do this? By expanding our level of influence.

Maxwell introduces five levels of influence or leadership:

Position: This level relies on title or position, but true leadership is more than having authority, technical training or following protocols. It's about having others gladly and confidently follow you.
Permission: This level relies on interrelationships. Time, energy, and focus is placed on the needs and desires of others.
Production: This level relies on results, whether it be profit, morale, goal-setting, problem-solving, and growth. People come together to accomplish a purpose.
People Development: This relies on the the leader's ability to empower others. People perform at high levels.
Personhood: This level is not discussed in depth as most people have not arrived at this status nor do so for quite some time.

In conclusion, everyone is a leader in one form or another. Everyone has some level of influence with someone. The question is how can someone become a better leader and unleash their leadership potential? This book tries to help. We'll see if it does.

"There have been meetings of only a moment which have left impressions for life, for eternity. No one can understand that mysterious thing we call influence...yet...everyone of us continually exerts influence, either to heal, to bless, to leave marks of beauty; or to wound, to hurt, to poison, to stain other lives."
--J.R. Miller

American Express--Turn Purchases Into Savings. Give Me A Break!

2006-02-08T16:06:00.000-06:00

American Express, apparently concerned with current savings trends in America, now offers a credit card that "turns purchases into savings." This "new kind of card" transfers a whole 1% of your purchases into a high-yield savings account. They are "giving" you $25 to jump start your new savings program and have also eliminated your annual fees, actually, only for the first year. Okay, so you're probably saying "Hey, that's great! Maybe I'll get that card and start saving some cash."

Let me be the first to tell you that you have fallen for it! For what? Please, stop. Think. In order for you to "save" money you need to spend money on this card that you probably won't pay off on a monthly basis. After the first year, you end up paying more than you spent, when they apply your new annual percentage rate that just so happens to be tied to the prime rate. Yeah, that's shocking. The annual fee after the first year also ends up being $35.

Please read the fine print. This high yield savings account is only 3.80%. That is a pitiful annual percentage yield when compared to the 6% to 12% you get from good growth stock mutual funds.

So before you leave home without it, stop and think. How can you save money while your spending it, with interest?

Dave Ramsey's Financial Peace University

2006-02-01T10:38:00.000-06:00

I am so excited about this. We recently went through the FPU course, which consists of 2 hour classes, once a week, for 13 weeks, and finally made sense of our finances. Heck, not only did we make sense of our money, we're actually in control of it. And that is an awesome feeling.

Yesterday, I met with a lady from our church about ministry possibilities and couldn't stop talking about Dave Ramsey and his material. I talked about his radio show, The Total Money Makeover book, envelope system, and, of course, Financial Peace University. She got really excited about the possibility of introducing Ramsey's material at our church and asked me if i'd be interested in getting that going. To that, I gave her an emphatic yes!

Shortly after arriving home, I opened up Outlook to check my email. Lo and behold, there was an email waiting for me about FPU. I have a meeting scheduled for next Tuesday to discuss it and I am hopeful that the church will support the program. There is definitely a need and, although I'm no financial expert, my story can help others make sense of their money.

Our current financial course at church only scratches the surface and has no follow-up and no accountability. FPU is the perfect fit.

-----------
Update:
I had my meeting and it went extremely well. We have decided to start a small FPU session, consisting of 10 to 15 people, and launch it to the congregation in the Fall. This initial group will consist of those individuals or couples interested in leading small groups later on.

I can't tell you how excited Matt and I are about this. FPU has been such a crucial aspect of our financial journey that we tell everybody about it. We first got started with the Total Money Makeover and were lead to FPU. I bought the Starter Special (the Total Money Makeover book, the Financial Peace Revisited book, Dumping Debt-DVD, Cashflow Planning-DVD, and Financial Peace Software) for my parents, brother and his girlfriend, and my sister and her husband. Why? Because we believe in the program and what it teaches.

The American Dream vs. Democratic Principles in Business

2006-01-30T13:22:00.000-06:00

I'm sure most of you are aware of the growing resentment towards Wal-mart, and I can honestly say that I'm not much of a fan of the superstore either. Still, this gives the state of Maryland and Chris Van Hollen no justification for its' current legislative initiatives. Apparently, some Democratic officials and a labor union, that is supported by Wal-mart competitors deemed appropriate the passing of an insurance bill in the state of Maryland obligating the superstore to provide at least 8% of its payroll into health benefits specifically or put that money into the state's health care program for the poor.

On the surface, this looks like a good idea. But, upon closer examination, is highly similar to programs found in Socialist goverments. Last I recall, the United Soviet Socialist Republic (USSR) collapsed due to economic depletion. So, why is it that politicians are now trying to 'better' America with such ideology? I can honestly say that it boggles my mind.

I then received my Monday Morning Memo from Wizard Academy, and lo and behold, Mr. Williams put into words how I feel about this specific subject. The memo starts quite simply with this: "America is a democracy and we believe in free enterprise." He continues with the definition of democracy and free enterprise. Quite simply, a democracy is "majority rule...Groupthink..."United we stand, divided we fall"...free enterprise - is to have an absolute dictator." This guy is brilliant!

The break down of the memo continues:

So while America's social system is a democracy, individualized financial dictatorship is the foundation of our economy.

That's right. Our economic system, rather, the success of our economic system is reliant on the money honchos. He with the most money, right or wrong, fair or unfair, gets to make the rules. I know it sounds harsh. But, in order for the American economy to prosper, this must be true. Otherwise, we'll be headed down that same road as the USSR.

Strange, isn't it? A democracy will have an economic system based on Darwinian survival-of-the-fittest, "It's a dog eat dog world and I'm about to wolf your poodle, pal."

It's ironic actually, but rightly so. Otherwise, there is no such thing as the American Dream. In order for this Dream to exist, two financial dictators must also exist: employees and customers. Our economic security relies on these two to perform as they must.

Employees, "if you don't like the rules of your dictator, you can go to work for yourself. But if you're an unwise financial dictator, the bank and the IRS" will come-a-callin'. "Welcome to America."
Customers, "if you don't prefer the person you bought from yesterday, buy from someone else tomorrow. God bless America: Land of the Free and Home of the Brave."

I'd like to close this post with the words of Mr. Williams:

"The American Dream" isn't the dream of a great society. It's the dream of personal wealth.

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Links:
Monday Morning Memo for January 30, 2006
The American Dream
Md. Passes Rules on Wal-Mart Insurance

Life Insurance, You Won't and Shouldn't Need It When Your 50

2006-01-22T13:39:00.000-06:00

I'm sure you guys have seen those life insurance commercials with the older people concerned about not having enough coverage to account for all the bills they may have at their death. Well, I'm here to tell ya, if you properly plan your finances now, this won't be an issue. I know it may sound harsh, but, it's true.

First of all, thanks to Dave Ramsey, our debt is nearly gone. And, I'm only 30 years old. Imagine that, almost no debt before I even get a glimpse of the Senior Discount at Denny's! Woot!

While taking the FPU classes, we learned that life insurance is not a permanent necessity, contrary to popular belief. Think about this. At the rate we're paying our debt (that is, my husband and I), our debt (excluding the house) will be completely eliminated in 2 years. That means no car payments, no credit card payments, no student loans! That's just awesome!

In roughly 20 years we'll have completely paid off our house too! That means that all that extra cash that used to go into some sort of debt, can know be specifically allocated to one thing: wealth building. Now that is something to look forward to. We can max out our retirement (401k's and IRA's), max out ESA's (Education Savings Account), and invest in other things like real estate without incurring debt.

So, next time someone tells you you'll need life insurance when your 65, it's complete hogwash. Unless of course you were irresponsible with your finances.

Wow, it's been a while

2006-01-16T12:51:00.000-06:00

Well, it's good to be back. I've been going 100mph in the last couple of months with the home-buying process and stack of work on my desk. Let me tell ya', it hasn't really slowed down much today. But, I decided to post today to get back into the rhythmn of things. So here we go.

To begin with, I am still excited about our new home and the opportunity to personalize it. It's a great thing to be able to do and in this great country, we have that freedom. Not that it can't be done anywhere else. But, to be quite honest, there's no other place I'd like to do it in. Well, Matt and I love our house and I did promise to post some pictures, so, if you on the link below, you can take a look at it.

Link

Ok, so we're on this Dave Ramsey kick and have been for several months now. Thanks to Dave, we were finally able to buy a home. And that is wonderful seeing as we've been married for 7 years. Just a year ago, we weren't making any progress financially, and only accruing more and more debt. I look back now and can't believe how stupid we were and can't see how we even made it that long. Then I think about so many Americans that live the way we used to and it just saddens me.

Since our financial awakening, we have made it our goal in life to teach our kids how to handle their money, among other things. It's really not that hard now, but man, it took us nearly 30 years to learn it ourselves. If we can instill in our kids the simple concept of personal finance, we've done a great job. There are so many things that parents worry about, like drugs, sex, and education. But money isn't a part of it, at least not until their kids reach their teens. I challenge any of you who are parents, to do this one thing. And, if you don't know how to handle this yourself, pick up the Total Money Makeover by Dave Ramsey. His ideas really work. The only way it won't is if you don't do it.

Ok, so I'm listening to the Dave's show right now and he's doing an interview with John G. Miller, the author of QBQ! The Question Behind the Question and just released Flipping the Switch: Unleash the Power of Personal Accountability. Just from what I've heard, I'm going to pick up these books and write about it shortly. They deal mainly with personal accountability which is nearly extinct in this day-and-age. What a concept huh, being accountable for the decisions we make and our thought process?

Soon-To-Be Homeowners

2005-11-29T14:02:00.000-06:00

I mentioned in a prior post that my husband and I made an offer on a house. Well, there are financial issues with it, mainly, the current homeowner didn't pay her mortgage. She hasn't done it for a while actually. Usually this isn't a problem, but the mortgage was broken down to an 80/20 loan. Meaning that 80% and 20% to purchase the home was separately mortgaged. And, this lady had each loan with a different lender, Bank of America and Ameriquest to be exact. Well, these two wonderful institutions have been fighting over the title of the house and are unable to clear it. Regardless of the many offers on the property, the house remains on the market to this day.

So, we ventured off once again with out realtor a week later and toured some nice and not-so nice properties. The second to last house we visited, we fell in love with. It's a cute little ranch house on a slab that's only 7 years old. The downside was the lack of a basement, but the interior space makes up for that. We made an offer later that afternoon, after withdrawing the other one of course. After negotiating for a couple of days, they accepted our offer. Yay! One step closer.

I scheduled inspections later that week and just now received the report from the guy. The only thing wrong with the place was that the ventless fireplace had no gas inlet. It looks brand new so I'm guessing they didn't hook up the gas line. They are going to fix that. Other than that, just the basic wear-and-tear and little fix-ups for us to handle. The house is pristine so the cleaning won't be too laborious and all that will be left is the personalization.

We went to Home Depot last night to look at their selection of washers/dryers and found a pair that fit our price range. You know, we're paying cash. I also picked out the paint colors for my daughters bedroom and her bathroom. That's the first room we're tackling. After that, we're budgeting a specific amount for monthly projects around the house.

I have to say, we're really excited about this house and owning it! We've been married for 7 years, ironically, that's how old the house is also. Almost like we were made for eachother. Heh, I know, that's pretty cheesy. But the thought did cross my mind. I believe everything happens for a reason. Like the previous house. We thought we really wanted that one. Then we found this one. God works in funny ways sometimes. And, the square footage is so much more. That previous house had 1265 square feet, but our house has 1800! Much more space to grow into, don't you think?

I'll be posting some pictures shortly, so check back soon.

Fun Anecdote With A Great Lesson

2005-11-21T14:14:00.000-06:00

I came across this anecdote while having lunch with Matt one day. What is great about this is that it was plastered on the wall of our booth at Jimmy John's, a sandwhich place. This place has the funniest crap on their walls, and sometimes, you'll catch a neat tidbit about life, as we did that day.

Untitled
An American businessman was at the pier of a small coastal Mexican village when a small boat with just one fisherman docked. Inside the small boat were several large yellow-fin tuna.

The American complimented the Mexican on the quality of his fish and asked how long it took to catch them.

The Mexican replied "only a little while".

The American then asked why didn't he stay out longer and catch more fish?

The Mexican said he had enough to support his family's immediate needs.

The American then asked, "but what do you do with the rest of your time?"

The Mexican fisherman said, "I sleep late, fish a little, play with my children, take siesta with my wife, Maria, stroll into the village each evening where I sip wine and play guitar with my amigos, I have a full and busy life, señor."

The American scoffed, "I am a Harvard MBA and could help you. You should spend more time fishing and with the proceeds, buy a bigger boat. With the proceeds from the bigger boat you could buy several boats, eventually you would have a fleet of fishing boats. Instead of selling your catch to a middleman you would sell directly to the processor, eventually opening your own cannery. You would control the product, processing and distribution. You would need to leave this small coastal fishing village and move to Mexico City, then LA and eventually NY where you will run your expanding enterprise."

The Mexican fisherman asked, "But señor, how long will this all take?"

To which the American replied, "15 - 20 years."

"But what then, señor?"

The American laughed and said that's the best part. When the time is right you would announce an IPO and sell your company stock to the public and become very rich. You would make millions.

"Millions, señor? Then what?"

The American said, "Then you would retire. Move to a small coastal fishing village where you would sleep late, fish a little, play with your kids, take siesta with your wife, stroll to the village in the evenings where you could sip wine and play your guitar with your amigos ....."

Author Unkown

It's Been Awhile

2005-11-15T09:16:00.000-06:00

I know I haven't made an entry in a while. Well, things have been crazy around here. Work has been about the same but, we are in the process of buying a house. Our first home. We ran around last weekend with our realtor and made an offer shortly thereafter. There are some financial and legal issues surrounding the house we want, so we may not even get it. All that means, we have to keep looking.

Now, this post may be long as it is a response to an article I came across online. You all know, I read a lot. Mainly books and news articles that pertain to finances. I've learned quite a bit and have disagreed with a bit too. So let's get started.

Drowning In Debt
First, there was an article on MSN a couple of days ago, Why young Americans are drowning in debt. The article initially recounts the stories of a college kid who has maxed out her cards and are is longer able to buy books for class. She doesn't make enough money to pay her bills so she's just trying to get by.

Just below her story, the article posted a couple of alarming trends that I am aware of, but some people just haven't been paying attention.

College costs have increased dramatically.
Credit cards are marketed aggressively to college students.
Housing prices have increased faster than inflation.

It's no wonder the first major financial decisions most college graduates make is to declare bankruptcy (between the ages of 25 and 34).

Free t-shirt
Most college kids sign up for credit cards on the first day of class. Most don't even know what kind of interest rate their getting much less that benefits. All they know is that they're getting a free t-shirt. Whoopteedoo! Hey, I understand the FREE thing. I used to be a college student.

If you're a college kid, or headed to college soon, make sure you take a look at what you're getting into. That free t-shirt will cost 100 times more than it's worth.

The Lesson
The article closed on an excellent note. "Every high school student in America should have to take some kind of financial-strategy class to learn about everything from banking, credit cards, savings, loans and protection from identity theft..." Now, we just have to find a financial-strategy class that kids will understand and participate in. We don't have to look far.

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Coming next.....Response to the Putting money in its place article by Kevin Eigelbach (Kentucky/Cincinnati Post) about Christian financial planning. Kevin doesn't get it.

Cars, cars, cars

2005-11-08T13:08:00.000-06:00

Americans love cars. We are fanatics about our cars. Those stupid things go down in value like a rock. According to Kiplinger's Personal Finance Magazine, cars lose 60% of their value in the first four years. Then, lucky you, you're making car payments for the privilege of losing your butt. It's amazing how many people do this. Most Americans. It's no wonder most Americans are broke.

A car purchase is one of the largest purchases Americans make that go down in value. Ten times out of ten, a car will lose its' value. You can't make money on a car, only minimize the damage to your pocket book.

Stop and Think
People really need to stop and think about the car buying process. Think about what millionaires do. To become a millionaire, you have to do what millionaires do. If you want to be middle class, do what middle class people do. If you want to be poor, do what poor people do.

The typical millionaire in America hasn't had a car payment in seventeen (17) years. I know you're thinking, "yeah, that's 'cause they're millionaires." Actually, no. They became millionaires because they didn't have car payments.

What does that car cost you?
The average car payment in America is $378.00 over 83 months, according to USA Today. If you invest $378.00 from age 25 to 65 in a decent growth stock mutual fund, you would have about $4.4 million dollars! That's an expensive car.

Still want to be a millionaire?
You have to make a decision about how you're going to live. Does this mean you can never have a new car? No. But you have to think about what that car payment is worth. For most Americans, that car payment is costing their kids college fund or retirement, and they are making almost no progress on their student loans.

If you want to win with money, you have to get rid of your car payment. Pretty simple, isn't it?

"There is an inverse relationship between the time spent purchasing luxury items such as cars and clothes and the time spent planning one's financial future."
The Millionaire Next Door

Dave Ramsey, The Financial Guru and Consumer Advocate

2005-11-07T08:03:00.000-06:00

In case some of you have been living under a rock, or just not paying attention to the financial/money sections on your news/media sites, Dave Ramsey has been all over the place. First on 60 Minutes, then on Oprah, now on The Early Show every other Tuesday. The guy is just everywhere and if you haven't listened to his radio show, you need to. There are some things you may not agree with, most things you will though. But the guy knows what he's talking about.

I setup a Google Alert so I can get the latest links to any articles that talk about Dave or just mention him. Most of the alerts I've received are merely churches or places announcing the schedule for Financial Peace University, a 13-week financial course taught by, none other than, Dave Ramsey (via video). We're in our 12th week of the program and I have to admit that it has been an excellent course on financial basics. It's the type of financial course for normal, hardworking Joe's that know little about finances and even less about the how-to's of budgeting and paying off debt. The course touches on everything that a household would encounter financially: budgeting, paying off debt, saving, insurance, real estate and mortgages, investing, collector's and credit bureaus and, even giving.

Of course, if you've actually read any of my posts you'd know that I am huge fan of Dave Ramsey. One main reason why I think so highly of this guy: he not only helped us get our finances back in order, but gave us hope for the future. He does this for everyone that does what he teaches. Sure, it's difficult to get a grasp of his concepts initially but once you do, you start to do something that seemed impossible--make progress.

Dave has written a book called the Total Money Makeover that outlines the basic principles to getting out of debt and building wealth. I'll outline them here so you can get an idea of what he teaches. For more in-depth description and application, I recommend you buy the book. And, when you get a chance to, listen to his radio show.

Dave Ramsey's Baby Steps:
Step One
Save $1,000 in an emergency fund

Step Two
Use the debt-snowball to pay off everything but the house

Step Three
Save 3 to 6 months of your household expenses in an emergency fund (same fund as Step One)

Step Four
Put 15% of your monthly income into Roth IRAs or pre-tax investment

Step Five
Start a college fund

Step Six
Pay-off the house

Step Seven
Build wealth in mutual funds, real estate and other investments

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Links/articles about Dave Ramsey:
Winter Tales: Tales of clutter offer cautionary lessons
RockyMountainNews.com

13 Ways to Live Well On Less
MSNmoney

The Anti-Debt Crusader (PDF)
NYtimes.com

Dave Ramsey (Wikipedia)

Your Retirement and Why Social Security Reform Is Not the Solution

2005-10-31T21:35:00.000-06:00

All throughout the last national election and during the first Bush administration we have been bombarded by political jargon in regards to Social Security. One side wants American taxpayers to have control of their money whether it be within stock options or the current social security program. The other side thinks there is nothing wrong with the current system and that we should leave it alone. Wherever you stand on the issue, I have one thing to say: Social Security reform is not the solution.

Why? Because we started off asking the wrong question. Why are we asking about changing, or not changing, a government program that affects our retirement? Why aren't we taking control of our own retirement options? Wouldn't you and I be better off come retirement not depending on the government? The answer is yes. Unfortunately, no one is doing anything about it.

Most of the hardworking folks in this country have options through their jobs to participate in some sort of retirement plan like 401ks and IRAs. Yet few are participating in such programs. According to USA Today, "the saving rate was minus 0.4% last month, after bottoming at a minus 1.8% in August." Why are Americans not saving? In September alone consumer spending rose 0.5%. America is a nation full of hyperspenders (Thomas Stanley, The Millionaire Next Door). Simply, we spend all or more of our income and don't save.

In May, Forbes Magazine highlited an article, Retirement Doomsday by Dan Ackman, in which Ben Stein spoke out in regards to Social Security and our current retirement situation. Stein believes "this is the greatest crisis facing the country that people can do something about," but they're not. What's even more amazing is that it can be easily remedied. How? Start saving now.

Four ways to help us start saving today:

Make saving a priority. If it doesn't come off the top, you won't do it. You will only save money when it becomes very important!
Pay yourself first. Before you pay any bills or spend money, put 10% of your income into savings.
Give, save, then pay bills. Give to charity, non-profit groups or churches.
You must start now!

Compound Interest and What It Means To Your Retirement
The key to saving for retirement is discipline. We have to be consistent over time. This is a great example of compound interest at work:

Forty (40) years of saving $100 per month, every month, at 12% will build to $1,176,477.00

$100 per month is more than feasible for most Americans, so start saving today!

"In the house of the wise are stores of choice food and oil, but a foolish man devours all he has."
Proverbs 21:20 (NIV)

FICO Overrated

2005-10-27T08:15:00.000-05:00

If any of you read my post a while back titled "Why FICO Stinks", you are aware of where I stand on the issue of credit scores and such. Well, apparently, Dave Ramsey was on the CBS Early Show last Tuesday discussing our good ole' friend Fair Isaac. If you happened to catch the show, it was an excellent explanation as to how consumers have been brainwashed, er, i mean, sold debt and the debt lifestyle.

Dave also went into how the scores are calculated and where it lacks to tell a lending institution about the individual and their personal situation. Most just look at the score and say yea or nay. Dave compared it to monkeys sitting behind the desk, oooohoooo, high score, yes.....oooohoooo, low score, no. It was quite entertaining to say the least.

Think about this for a second, in order to have a high score, one must have debt. Apparently, debt shows lenders that you are fiscally responsible. I don't think I have heard anything more absurd in my life. Let's see, I don't know how to live within my means so I have a handful of credit cards, a car payment, a mortgage, and Lord knows what else, and that is being fiscally responsible? Give me a break!

Have you seen that commercial for FreeCreditReport.com? You know, "I'm think of a number between 700 and 8oo." He goes on to say that his score is, uh, I don't know, high, and because it is high he is able to save a lot of money. I laugh every time I see it and then think about all the people that have fallen for that trap. How in the world can you save money when you are knee-deep in debt? By getting a good interest rate for borrowing more money, to go further into debt? Yeah, that's intelligent and no thanks. Dave says that the "only way to have a good credit score is to have debt and stay in debt for the rest of your life and it is not an indicator of wealth. Now, I'm not gonna go and trash it. But all this, "I'm gonna make all of these moves and I'm going to continuall pay the bank for the rest of my life so I can have a high FICO score"...that sounds like a great plan...for the bank."

Dave also mentioned in the interview that the FICO score is not an indicator of wealth as some have assumed. "You can have $1 million given to you or make $1 million a month and have a crummy score. It's not a wealth indicator." In fact, The Millionaire Next Door tells us that the majority of the millionaires in America became millionaires because they didn't have debt.

So, if you have a crummy FICO score because you don't have debt (not because you mis-managed your credit), and want to buy a house go to a lender that offers manual underwriting according to FHA, VA, and FannieMae underwriting guidelines. If you've paid your rent early (or on time) for two years, if you've had a steady job for two years, have nothing on your credit score except for your name and social security number, you qualify for the best mortgage rates around.

It'll take some work finding a lender that does manual underwriting though. About one in five lenders still does it and that means they actuall do the work. "They look at the human being involved. See you could walk in again with $1 milion in the bank and $1 million a month income and a crummy FICO score and not get a mortgage at some of these places."

Closing thought from Dave Ramsey:
"If you are making all of your financial moves to please the bank, it's gonna please the bank." Instead of trying to find ways to raise your FICO score, think about finding ways to buy the things you want, as well as need, with money you already have. Why is it that Americans, when they want or need something, first look to borrow before they look to see if and how they can afford it? Ironically, we're a rich nation full of poor people.

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I ran into another post about credit scores over at MoneyPants.com called Keeping Score. A good read.

If You Can Conceive It, You Can Achieve It

2005-10-11T21:04:00.000-05:00

After several days of reading Think and Grow Rich, I have finally completed it from cover-to-cover. Not that it's difficult book to read, but a bit more challenging than the plain written Rich Dad Poor Dad and Total Money Makeover. I think of Napoleon Hill's book as a guidebook toward self achievement and the role our mind plays in our pursuit of success.

The book is broken down into 12 keypoints or steps as Hill refers to them toward a life of riches:

Step #1: Desire is the starting point of all achievement. It creates a mentality that sees no pursuit as impossible or unattainable and accepts not failure.

Step #2: Faith (visualization and belief) that you will be successful. "Faith removes limitations!"

Step #3: Influencing the subconscious mind by way of autosuggestion. Autosuggestion refers to all forms of stimuli that are absorbed mentally with the use of the five senses.

Step #4: Specialized knowledge to creates opportunities for success. Knowledge is not power, however, it creates an opportunity to attain it.

Step #5: Imagination gives shape, form and action to our desires. "It has been said that man can create anything which he can imagine."

Step #6: Develop a plan of success. Use a Master Mind alliance to develop a plan that will work. If it doesn't work at first, devise another plan.

Step #7: Grab procrastination by the gills. The ability to make timely decisions is crucial. Procrastination and doubt will only deter progress.

Step #8: By combining your desire for success with will-power, you insure attainment your goal. Persistance "is to the character of man what carbon is to steel."

Step #9: Use your Master Mind alliance to 'attract' power. Whatever knowledge you lack, your core group should be used, as a tool, where you lack to attain power.

Step #10: Harness the power of sex and transform it as a driving force toward your goal(s). "Far from being geniuses because of great sex desires, the majority of men lower themselves, through misunderstanding and misuse of this great force, to the status of the lower animals."

Step #11: Feed your subconscious mind with plans and desires that you want to take physical form.

Step #12: Step up the receptive process of your brain through positive emotions. When the braing functions at higher rates, it attracts more ideas and thoughts.

Step #13: Using your sixth sense by developing your mind from within through meditation.

"The ladder of success is never crowded at the top."

Babylonian Parables for Financial Planning

2005-10-09T15:37:00.000-05:00

The Richest Man in Babylon: The Success Secrets of the Ancients by George S. Clason offers creative success stories in the form of parables for sound financial planning. Below are the keypoints from the book which Clason deems the Seven Cures for a Lean Purse:

Cure #1: Start thy purse to fattening. Save 10% of your earnings.
Cure #2: Control thy expenditures. Create a budget to live within your means.
Cure #3: Make thy gold multiply. Invest your savings from Cure #1.
Cure #4: Guard thy treasures from loss. Invest only when your principle is safe.
Cure #5: Make of thy dwelling a profitable investment. Own your home.
Cure #6: Insure future income. Plan for retirement and have life insurance.
Cure #7: Increase thy ability to earn. Continue to educate and respect yourself.

"Go thou forth and practice these truths that thou mayest prosper and grow wealthy, as is thy right."

Rich Dad Poor Dad, en breve

2005-10-08T15:26:00.000-05:00

The following is a breakdown of Rich Dad Poor Dad: What The Rich Teach Their Kids About Money That The Poor and Middle Class Do Not!, authored by Robert Kiyosaki, into major keypoints. The main concept to take away from the book is that it is absolutely crucial to teach financial literacy in schools.

Lesson #1: The Rich Don't Work for Money
Don't work for money, make money work for you.

Lesson #2: Why Teach Financial Literacy?
Understand the difference between assets and liabilities.

The rich buy assets
The poor only have expenses
The middle class buys liabilities they think are assets

Lesson #3: Mind Your Own Business
Build your asset column with income generating purchases.

Lesson #4: The History of Taxes and The Power of Corporations

Taxing only the rich doesn't work
The rich understand taxes and the law, so the taxes trickle down to the poor and middle class
How corporations are used for tax advantages

Lesson #5: The Rich Invent Money
The rich understand financial statements, investment strategies, a sense of the market, and the laws. Those who are trained financially will recognize opportunities.

Lesson #6: Work to Learn--Don't Work for Money

Balance specialization and diversification of skills in the workplace
If you specialize and are unwilling to learn something new, make sure your employer is unionized
The rich groom their kids to gain overall knowledge of business operations and the relationship between departments within a company

Taking Action!
We are given two gifts in life: our mind and our time. We are responsible for what we do with these gifts. We have the ability to control our destiny with every dollar we earn. If you choose to spend it foolishly, you have chosen to be poor. If you choose to buy liabilities, you have chosen to be middle class. If you choose to educate yourself and to acquire assets, you have chosen to become wealthy. The choice is yours.

"Every day with every dollar, you decide to be rich, poor or middle class."

Knowledge Is Power, Or Is It?

2005-10-06T17:22:00.000-05:00

According to Naopleon Hill, Think and Grow Rich, the fourth step to riches is specialized knowledge. What is specialized knowledge?

Hill says that there are two types of knowledge, general and specialized. General knowledge deals with what I like to call 'book smarts.' A great example of this would be in the college/university arena. There is an abundance of intelligent professors that are making little. Why is it that some of the smartest people in the country are some of the poorest? It is not because of the field they have chosen, but do to the fact that they don't know how to use that knowledge.

"Knowledge will not attract money, unless it is organized, and intelligently directed through practical plans of action, to the definite end of accumulation of money." This is an outright contradiction to the popular belief that knowledge is power.

How then can one take advantage of knowledge to attain wealth? By taking using that knowledge to develop an organized and definitve plan to get rich. This is specialized knowledge.

I think that education is crucial to the development of one's thoughts. It is not about the amount of general or specialized knowledge you posess, but about drawing out or developing your thought processes in an organized manner.

"An educated man is one who has so developed the faculties of his mind that he may acquire anything he wants, or its equivalent, without violating the rights of others."
Napoleon Hill, Think and Grow Rich

Why FICO Stinks

2005-10-05T10:40:00.000-05:00

I was listening to Dave Ramsey the other day and he was talking about FICO. For those that don't know what FICO is, it is simply your credit score. FICO was developed by Fair Isaac & Company as a 'method of determining the likelihood that credit users will pay their bills'.

Your FICO score is determined by five factors:

On-time and early payments, 35%
Debt level, 30%
Length of credit, 15%
Type of credit, 10%
New credit, 10%

The only way to have a really high FICO score is to go into debt and stay there perpetually. Dave said it should be renamed the "I Love Debt" score. The majority of the people concerned about their FICO score are those people who spend most of their income on payments and interest as opposed to wealth building.

Your FICO score is determined by your willingness to go into debt and stay in debt. Is this your main goal in life?

"The rich rules over the poor, and the borrower is servant to the lender."
Proverbs 22:7 NKJV

Ideas To Ponder

2005-10-04T20:25:00.000-05:00

It seems as though I am blowing through the list of books on the recommendation list. Truly I am devouring every nuance in each book in an attempt to engrave in my mind the mentality and attitude to which one becomes wealthy. I am wealthy in a sense already with a loving husband, beautiful daughter, two mongrel muts, and a deep-seeded faith in my Lord and Savior Jesus Christ. My aim at the moment is to develop the 'rich' mentality so that my childrens' education and our retirement are more than feasible.

Currently, I have read Rich Dad Poor Dad and just completed The Richest Man In Babylon last night. If you are reading this, I highly recommend these books to aid in your financial and personal endeavors, whatever they may be. I started reading Think and Grow Rich today, and I have to clarify that the book doesn't deal simply with acquiring wealth but of adopting a mentality to which you are able to attain anything you desire.

Many of the limitations we encounter are self-induced and can be overcome. "It is essential for you to encourage the positive emotions as dominating forces of your mind, and discourage-and eliminate negative emotions" describes Napoleon Hill in Think and Grow Rich.

It seems as though normal people like you and I, have conjured up excuses or alibis to our misfortunes or lack of progress in certain areas of our lives. Not too long ago my husband and I sat in our little pity-party about our financial progress, or lack thereof. But those days are behind us and now, we both look forward to the possibilities.

In merely four months, with much planning and hard work, we paid off over $10,000 of debt, including 3 credit cards and our truck. We sit down together every month and plan our budget. We've all heard that saying "if you fail to plan, you plan to fail" and I agree wholeheartedly that it is so. Robert Kiyosaki, George Clason and Napoleon Hill were adamant about this very thing in their books. They didn't believe in such a thing as luck, and now, I don't either. Remember that "luck is what happens when preparation meets opportunity."

To Be Or Not To Be Normal

2005-10-03T12:18:00.000-05:00

Forbes Magazine, a business and financial publication, released the Forbes 400 last week. If you don't know what the Forbes 400 is, well, it's a list of the 400 wealthiest people in America. You can take a look at the list here.

Did you know that 69% of the top 400 men and women on the list, that's 7 out of 10, started with nothing. The top 5 of these are self-made billionaires and only 4 had college degrees. Simply, they started out just like you and me, with nothing. But, these people were able to take opportunity by the hand and create prosperity for themselves and generations that follow.

What does that mean to you and me? It means that we have the same opportunities and potential to generate the type of wealth that these 400 individuals enjoy today. When surveyed, 64% of these 400 individuals said the number one key to building wealth in America was to get out of debt and stay out of debt.

Normal Americans
The majority of Americans are normal, middle class, hard-working people. Normal Americans have six credit cards, a car payment, and loans. Normal is broke, but that can change.

There are two barriers that keep Americans from realizing their financial dreams: debt and taxes. If we were able to keep a large portion of our tax payments and combine that with the money freed up from debt, we would be in a position to flourish financially and do the things we were meant to do. The only thing holding us back, is the decision to be or not be normal.

Challenge
We live in the wealthiest country the world has ever known. The challenge is this, what are you going to do about it?

"Success comes to those who work smarter."
Unknown

If You Want To Be Rich, Follow These Seven Steps

2005-10-02T15:14:00.000-05:00

Warning: This is not a get-rich-quick scheme. These steps, if practiced, will bring prosperity and wealth, guaranteed. They require patience and consistency. Do you have what it takes? If so, read on.

Step One: Pay yourself first.
To put it simply, save. Take out one-tenth of your monthly income and save it. You can put your savings in a money market account temporarily and later use it to invest.

There are three basic reasons to save, 1) emergency fund, 2) purchases, and 3) wealth building.

Step Two: Control your expenses.
One word: budget. Budget your expenses so you will have the means to pay for necessities first and enjoyments second. Remember that the purpose of your budget is to make saving possible. Note: Managed money goes farther.

Step Three: Make your money work.
Once you have disciplined yourself to save and manage your income, you will be able to multiply your savings. Saving is only the beginning, multiplying your savings is just as important. This can be done through real estate, stocks, or mutual funds. The key to remember here is to utilize compound interest.

Example: Did you know that the average car payment in the United States is $370.00? If you had no car payment and invested that $370 in a good growth stock mutual fund from age 20 to 65 you will have accumulated $4.4 million. That is the power of compound interest at its best!

Step Four: Protect your money.
Protecting your money or investments involves two principles: 1) security, and 2) wise counsel.

Security
Invest only when your principle is safe and can be reclaimed when needed.

Wise Counsel
Seek advice from individuals who have experience in making and managing profits, not from the poor or middle class who have debt.

Step Five: Own your home.
Be smart about the type of mortgage you take out. The most common type of mortgage in America is 30-years. The most common income group in America is the middle class.

When you own your home, your cost of living will be reduced and the ability to purchase "things" or invest increases.

Step Six: Leave a legacy.
It is of great importance for you to prepare for the future. What will you leave behind when you pass? There are two important things to remember: 1) have a will, and 2) have life insurance. Recommendation: Purchase a term-life policy that equals ten times your income.

Beware of whole/universal life policies. These benefit your financial planner and are not guaranteed to cash out when you die. Your family will be left with nothing. The allure is the "cash-savings", but, you already have a proper investment strategy and savings so you don't need it.

Step Seven: Better yourself.
There are four principles inherent with this last step:
1) pay your debts promptly and don't buy things you can't afford,
2) take care of your family,
3) leave a legacy, and
4) give to charity, organizations and churches, or volunteer.

Ten Tips to Make Your Home Office Work

2005-09-13T11:03:00.000-05:00

There are a number of benefits from having a home-based office. It increases efficiency and productivity along with providing an environment for which to spend more time with family.

So, what’s the downside? Having a home office creates the problem of distinguishing between work and home life. It is absolutely vital for your business and family life to be separate from the other.

Here are ten ways you can avoid overworking and never leaving the office.

1. Office space. Create a physical separation of your office from the rest of your house. Don’t put your office in a leisure room, lounge area or kitchen because they can easily distract, not from your work but from your life. A helpful tip would be to put your office in a space that has a separate entrance such as a garage, attic or walkout-basement.

2. Be disciplined. Make a mental note that going to the office means “going to the office”. Dress as if you are going to work, after all, you are.

3. Acknowledgement. Make it clear to your family that the office is for work and ask that they respect the work boundaries.

4. Office hours. One of the simplest ways to avoid overworking is to set office hours and try to complete your work during that time.

5. Comfort zone. Create a space that has a high level of comfort. Get a good desk and chair that will increase your focus on your work and not your back. Don’t forget good lighting.

6. No busy signals. It is important to have a separate phone line for your office. It is also crucial to have a dedicated fax line. This makes it easier for you and your clients. Note: If your budget does not allow for another line, consider online fax options such as eFax.

7. Hardware. Buy a good computer, printer, and fax machine.

8. Meeting place. Avoid meeting new and important clients at your home office. Setup meetings at neutral locations like coffee houses or rent a professional location.

9. Networking. Get out of the office on a regular basis to meet with potential or current clients.

10. Storage space. Regardless of your “paperless” business, plan for storage space for the paperwork you will accumulate during the work process. Utilize an efficient filing system for your financial records and contracts. Note: Keep it simple.

Checklist: User-Friendly Sites

2005-09-11T22:43:00.000-05:00

Today we'll go over the some of the things to create a user-friendly website that ensures return visitors.

Usability Checklist

Navigation and menu system that is easy to find
Good contrast in colors with regard to text, links and background
Distinguishable link to your home page
Clear description of each page
Include "alt" tags on every image
Include "title" tags for every link

Navigation and menu system that is easy to find
The majority of sites have one thing in common, a menu system that is at the top left. Most cultures, with the exception of a few, read left to right. The Internet is no different.

Good contrast in colors with regard to text, links and background
Next to navigation placement, choosing an appropriate color scheme is just as important. Think about complimentary schemes and colors that don't "tire" your eyes.

Distinguishable link to your home page
Make it easy for people to get back where they started from any location on your site. This is recommended for two reasons: 1) if a visitor gets lost, they always have a way to start fresh, and 2) make it easy for visitors to bookmark your site.

Clear description of each page
Make sure you have a clear description of your links and the pages they lead to. Remember to use common phrases and terminology. Don't try to be clever or creative with your titles because your visitors will most likely be confused and not know where to go.

Include "alt" tags on every image
This is something that is commonly overlooked and easily remedied. The "alt" tag, which stands for alternate text is used to accomodate the visually impaired that may be visiting your site.

Example: (right-click and view properties)

Include "title" tags for every link
The "title" tag, like the "alt" tag works similarily and is just as important. Give a clear description of what the link will do when it is clicked.

Example: (right-click and view properties)

 Home

By utilizing these simple tips, you can ensure that your website will be more user-friendly.

Six Ways to Turn Your Business Into A Success

2005-09-07T16:04:00.000-05:00

Six definite and practical steps to attain online success.

Step One: Fix your mind on your determination of success for your business. It isn't enough to merely state "I want my web design business to thrive." Be definite about what would make your business successful.

Step Two: Determine what you intend to give in returrn for success. In web design it can mean anything, time or money for example. There is no such thing, in business, as "something for nothing".

Step Three: Set a definite date for carrying out your intentions. Be realistic.

Step Four: Devise a plan that will assist you in reaching your timeline and begin at once. Ready or not, put this plan into action as soon as possible.

Step Five: Develop a clear and concise statement summarizing your plans to reach success. This statement should include your specific definition of success for your business (this could be money, clients, niches, etc.), the time limit, your investment, and finally, how you intend to get there.

Step Six: Read your written statement out loud at least twice a day, once before you go to sleep and again when you wake up. While you read, visualize yourself in that position of success.

Al Gore TV

2005-08-01T11:37:00.000-05:00

Former Vice President, Al Gore, launched his cable news network, Current TV, today which is aimed at the "Internet Generation".

After sifting through the major news sites and blogs about Gore's project, I am somewhat skeptical that this will take off. James Archer, at Strange Brand described quite thoroughly some of the inherent concerns with this idea and quite frankly, what he doesn't want Current TV to be. Take a look at his post about Current TV. Like Archer, I would support the efforts of a network that encourages content submission from amateurs. After all, I love what podcasting is doing and where it's headed. My skepticism comes with this concept that the network's content will come directly from amateur submissions.

Great idea, bad implementation.
According to Fox News, "Current is also requiring its filmmakers to sign an agreement giving the network three months' exclusive use of material it has accepted for air." That means that these"amateurs" would have to refrain from using their material on their own websites. Apparently, Current had initially sought six months exclusivity, which lead to widespread complaints from the networks' much needed content sources.

David Neuman, Current's programming director, states that they "... can't apologize for doing what we need to do to get this business off the ground,". So, if amateur filmmakers/videographers/etc. aren't willing to hand over their material to Current, where will the content come from? Wouldn't their lack of cooperation make the network less appealing?

Progress: 95%
One of the neat features of Current, will be the implementation of an "Internet-like on-screen progress bar" which will display the length of a show, or "pod" as Current is now calling it. These "pods" will consist of approximately two to seven minute shows with topics ranging from careers to technology to current events and even spirituality.

Current is says it is targeting "the Internet generation". What does that mean exactly? Archer's article describes the stereotypical idea that this demographic is "looking for quick-hit news, extreme attitude, and anything that includes cool words like “blog” and “pod.”"

Ironically, this "Internet generation" that Current seems to have so well studied, seeks content that contains in-depth information about a specific topic and not flashy gimmicks. Yes, Current will flop, because of the lack of valuable and appealing content. Someone needs to remind Mr. Neuman that, to the "Internet generation", content is king.

Scribbling in the Sand

2005-03-14T20:20:00.000-06:00

I've been reading a book that my husband gave me about a year ago that I didn't read then. I picked it up the other day in continuation of my renewed reading journey. My husband, Matt, gave me the book because it deals with creativity as it pertains to the modern Christian and it has become a blessing to read the thoughts that Michael Card put into words so well.

"Because we are called to creativity, a working, gut-level understanding of the imagination is vital. It can be our greatest strength or our greatest weakness. Sometimes it is both at the same time! To harness the imagination, or better yet, to bring it under submission to Christ is something about which we don't talk or pray or do enough. But before it can be redemptively used, it must be reclaimed."

I am guilty of this. Not once have I thought or prayed about something so vital to the creative process to harness its full strength. One of my college professors always talked about how every human being has been given the gift of creativity in one form or another, because, after all, we are made in the image of God and the first thing God showed us about himself was that he was a creator. So, who better to seek inspiration and knowledge about creativity than the One who first demonstrated it in Scripture.

Scribbling In The Sand: Christ and Creativity
Michael Card