KIDS AND MOOLA

Times have changed.  When I was a kid, we didn't have all these gadgets to buy: computers, phone, ipod, kindle...  Nope, we just went outside and hung out with nature.  Ahh....those were the good ol' days.  But today kids are bombarded with all this cool technology.  And it puts stress on parents to spend money they need for bills.  What to do??

This is a perfect opportunity to teach your kids about money.  Give them an envelope and tell them to write on it what they are asking for.  Let's say an ipod.  Let them save their own money in this envelope.

The lesson:  separating money is a safe, sure fire way to raise a buck!

EDUCATIONAL TV vs. NON EDUCATION TV
...and its relevance on debt control

...and everything else in your life.  Here's why:  When you watch educational tv, you are stimulating your brain.  When you watch non educational tv, you are weakening your brain.


You see, thinking requires an active mind.  And for some, thinking comes a little easier.  But if you've ever observed someone who isn't much of a thinker, you realize how much work thinking really requires.  So when you watch an educational program, your brain is asking questions or forming opinions or hypotheses.


On the Contrary, non educational tv requires little or no thinking.  You just sit there on the couch getting out of shape.


So if you really want to make better financial choices and control your debt, you have to think like a smart person.  If you want to be a smart person, you have to live like a smart person.  Smart people choose educational material over non educational material.


The added bonus to living like a smart person is that you will improve every aspect of your life.  Smart people live happier lives because they don't have to suffer the consequences of dumb choices.


So if you support this line of thinking, start with the tv; watch mostly news and educational material.  See if you start thinking differently.  I think you will be pleasantly surprised.


And if you are willing to take the challenge, please, let me know if my theory is correct.  I am really very interested.  Plus, it would please me to know, if by helping you, I am doing my part in contributing to society.  Take care

EASY WAYS TO REDUCE YOUR DEBT?

Do you want to reduce your debt? Of course you do! With a little guidance, you can. There are two ways to manage debt: spend less and make more money. We are gonna do both!

Spend less money

• Be a better shopper:  If you had to pick an expense that will bankrupt you, groceries tops that list. Learn how to cook meals that cost less and go further. It just takes a little planning. For instance, a pasta and tomato sauce with ground beef is very inexpensive to prepare and feeds a large family.
• Cut back on junk food.  It isn't good for you anyway. Be a smart shopper; try buying most of your groceries when they're on sale.
• Limit eating out. Not only is it expensive, it's not as healthy than eating at home. Instead of blowing all that money, you could be stashing it or paying off some of that debt.
• Be conservative: Everything is expensive: Gas, electricity, utilities... When you look at the daily costs of these bills, it doesn't sound like much, but, boy, do they add up at the end of the month.
• Only drive when you have to. Plan your errand runs. Drive a little slower.
• Turn lights off when not using them.  The power company is already rich.  And the more money you give to the power company, the less liquid money you have for you and your family.  I used to tell my kids "the more money you waste on electricity, the less money I have for you".  The threat of less junk really got to them...lol
• Don't let water run.  Not only is it costly it isn't conservative.  Save Mother Earth.

These are just a few things you can do to conserve. I bet you can think of some more. Make a list now!  Here some more....

• DIY. If you can do it yourself, do it! When I have a vacant rental apartment, I do the painting and cleaning myself. I save hundreds. If I have an air conditioning problem, I call my wonderful ac guy. When you need to hire someone, ask your friends if they can recommend someone. Develop a network of people who do great work at reasonable costs. Run your life as if it were a business. This way you make decisions that are financially sound. And it's fun, too.
• Change your attitude. If you are in the market to make a purchase, don't buy it just because you have the money. Be patient, look around. Find the best deal you can. You can apply this method even in the grocery store, especially in produce.
• Live simply or beneath your means. If you make 25K a year and you spend 30K, you are poor. I know several people who made more money than I ever have, and now they're not only broke they owe people money. I made much less but I have more savings than they do.
• Separate your money. I tell everyone to do this. Do not co-mingle your money. Open two accounts: checking and savings. Your checking is for your monthly bills. Calculate what you need in this account for bills. Your savings is your fun account because you get to see your money grow. Then each week or whenever you get paid, take some cash. Not to blow but for gas. Really think twice before you spend this cash foolishly because it's all you're getting.

Set goals. When you finally get to the point where you can stash some of your earnings, set goals for your savings account. Save $500. Then $1000. Don't stop! It's a lot more fun than spending your hard-earned cash.

How you can make money?

• Sell stuff. Clean out the garage, the closets. If you're like most of us, you have accummulated "stuff". Have garage sales or place ads on http://www.craigslist.org/. I love craigslist! It's easy and free! Use this cash to get ahead. Put it towards a bill. What else can you sell? Make a list now!
• Work at home. Do you have a special talent? Are you knowledgeable in a certain field? Do you have a hobby? If so, you can have a protifitable web site.
• Start a business.  Start a business with your spouse or a trusted friend.  Put your heads together and brainstorm a plan.  Start small, part-time, and do something you enjoy.  Ask yourself "how can I fill a need?"  Look through small business magazines. It gets the creative juices flowing.

These lists could go on.  Grab a notebook and a pen.  Expand on this blog by doing a little brainstorming of your own.  Do it right now.  Then tell me what you came up with.  I am really interested.  Go ahead...I'm waiting :)

CAN YOUR FRIENDS BE COSTING YOU?

Friends are a wonderful commodity.  Some friends should be cherished; others should get the boot.  Friends come in different categories:

1. The big shot.  This is the person that has an image issue.  He wants everyone to think his life is squeaky clean, and his life is perfect.  He spends more than he can afford and doesn't save for the future.  He drags you out and expects you to match him in the spending arena.  And when it's all said and done, you are broke and feeling negative.
2. The user.  This person takes advantage of your good nature and besides, you always pay the bill.  And she gets what she expects.  Before you go out with this friend, say, I'd love to go out, but I'm short on cash tonight.  You never know, you might get a freebie for once.
3. The borrower.  This person never has money and is always asking to borrow from you.  Everyone gets in a bind once in awhile and might need assistance.  But the only thing the borrower seems to be good at is blowing his money...and yours.
4. The pressure monger.  The pressure monger wants you to do something you don't really want to do.  He won't take no for an answer.  Not only does this situation usually require your money; it usually benefits the monger. 

All of these categories can either be handled with a little finesse and honesty.  All you might risk is angering this person, in which, I can say she will get over it.

Picking the right friends is crucial to your well being.  Picking a friend is a lot like picking a spouse.  She must be compatible to you or you risk battles down the road.  Friendship like marriage should be a journey filled with growth and common ground so everyone involved meets with prosperity.  It's a positive, spiritual mode of transportation through our world.  Anything that generates negativity should be relooked at and removed, otherwise your life will be emotionally unhealthy.

If you have had an experience with a friend, I would love to hear about it and how you handled it.  Take Care

ELIMINATE YOUR CREDIT CARDS

The one trait a person should have when owning a credit card is discipline.  But that is easier said than done unless of course you know the trick.  And I'm going to tell you what it is because I want you to succeed.  We all know that if you charge a purchase on a credit card the ideal situation would be to pay that off the very next month so you don't suffer interest charges.  But how do you charge just enough that you are able to pay it off the next month.  It's easy to lose sight of the amount when it's not cash you are transacting with.  So what you have to do is pretend you are paying with cash, not a card.  You literally say to yourself, "could I afford this today if I had cash"? If the answer is no, don't charge it.  If what you need to purchase is an emergency -- and I'm a firm believer that is the only time you should use credit cards -- see if there is another way to get the money.  For instance, ask a family member for a loan or some other similar way.

Credit cards do have a purpose:

• If you have your own business, you may need a credit card.  Not to charge unlimited purchases but for recordkeeping.  Once again, pay them off each month.
• If you are trying to build good credit, having a credit card can do that, but first you must learn a couple of truths about this strategy.  First, I would have just one major credit card.  Having one card will help keep you inline.  Secondly, and most importantly, let's say you have a credit card with a $1000 limit and you charge $1000.  Just the fact that you maxed out your limit will harm your credit score.  That's right, credit bureaus reward you with good ratings when you only use about 50 percent of your limit.  Personally I wouldn't use that much because, remember, you want to pay it off next month.

But if you unfortunately are struggling with credit card bills, there is a plan for you to follow:

• First of all make a list of all of your credit cards, including balance and interest rate. Now list the minimum payment required on each one.

• Arrange the list so that the credit card with the highest interest rate is at the top and the one with the lowest interest rate is at the bottom.

• Add up the required minimum payments for all of your cards. Now compare the total monthly minimum to the total interest charged. You will find that they are pretty close. If you just pay the minimums you will be in debt for the rest of your life. This is the card's company's biggest secret. They want you to make purchases based on the rationale of "Can I afford the minimum payment?"

Take a long hard look at your finances and determine how much extra you can come up with each month to apply to your credit card debt. This is in addition to the minimum monthly payment. Look for ways to cut other expenses if necessary to come up with more money.

Once you have that amount, write it in big bold numbers at the top of your list. Do not change this amount! This is about discipline and getting out of debt.

• Call the credit card companies, starting with the one with the highest interest rate, and ask for a reduction in interest. Stress your good payment history and the fact that you have been a long time customer. You might even elude to the fact that you have received an offer from another card with a better interest rate and ask if they can top it. Whatever you do, always conduct yourself in a professional manner. Losing your cool will definitely get you nowhere.

• If the card companies refuse to lower their rates, shop around for a card with a lower interest rate. Transfer your highest interest rate balance to a lower interest rate card. Now redo your list with the new interest rates. But do not change that total amount set aside for payment.

• Each month, pay the minimum balance on all of your cards except the one with the highest interest rate. On this card, pay the minimum plus the additional amount that you have delegated to use for your card debt.

• Continue to do this until your card with the highest interest rate is paid off. This will take a little time, so be patient. Then take the amount that you were paying on the highest interest rate card and apply that amount to the second highest rate card. Once you get this plan rolling you will find yourself paying off the subsequent cards faster.

This plan of reducing your credit card debt has been proven to work time and time again. Don't let the credit card companies keep you in their prison any longer. Use this plan and free yourself from credit card debt forever.  You can do it!

EXPECT THE UNEXPECTED

How many times have you been elated because you have extra cash and spent it on something other than your living expenses? If you've done that more than once, you are failing to realize it isn't extra cash at all. This is why separating your money is so vital.


If you would have separated your money, you would not falsely see this cash in hand as extra. With this so-called-cash in hand, you go out and have a good time, only for the euphoria to collapse into anxiety when you realize one week later, you needed that "extra cash" for a bill you just received. oops! You can avoid being short money if you just discipline yourself to separate your money.  There are many ways to separate your money. 

1. You can open another bank account where you put money you have separated into.  (This is the way I do it)  I set goals and get a kick out of watching my money grow.  It's an adrenaline rush!
2. Another way to separate your money is envelopes.  Put your money in an envelope and seal it (just for security reasons).  If you have a safe, put it in there.
3. If you don't think you are disciplined enough to live side-by-side with your stashed cash and a bank is not your option at this time, give it too a trusted family member.  Perhaps one who doesn't live with you, like your mom.

Go ahead and try it, and eventually, you will become stronger.  You will have great self control.  It's an awesome thing.  Keep me posted, please.  Take Care

I'M GOING TO PUT A SPELL ON YOU!

Not really...actually you are going to put a spell on you!  Intentions...great intentions....we all have them, but for many, intentions never become reality.  It's hard to follow through on intentions.  Things get in the way.  You're too busy; fear; excuses; or you just aren't feeling confident...

Well, you can accomplish your goals through hypnosis.  Hypnosis is not what you see in the movies, rather, hypnosis is the power of suggestion.  And you can do it to yourself.  The power of suggestion is merely suggesting ideas to yourself -- self talk.  I do it all the time.  It works.  I promise.

• Literally tell yourself what you need to do, how you need to do it.  It could be something as simple as being in a store and seeing something you would love to have and just saying "no" to it, or something a little more complicated like sitting down to plan a new budget and forcing yourself to sit down and take the time to work it out.  In the latter, I might, in my mind, say to myself, "Sit down and work out another budget.  You'll feel better about yourself if you do.  You will have more money. And when I'm done, then I am gonna do something I enjoy".  That's about all it takes!  You might make it your own, but you get the idea.

In addition:

• Jot down a to-do list in a small notebook  also helps follow through because everytime you complete a task on your list, it feels so good.  You've accomplished something.  You are constructive.  You get excited about completing another task because you want to scratch out something else!

Anxiety and fear get the best of all of us sometimes.  It's that feeling of nervous energy.

• The best way to cope with this feeling is to do something constructive like gardening or cleaning out a closet...  Sometimes life can be overwhelming, and I think the reason this works is because it calms us down and lets us feel we have a purpose.

The reason I posted this on my debt control blog is because sometimes the biggest obstacle is not that we don't know what or how to do something, but rather getting the motivation it takes to do it.  I hope this helps you, and I would really love to hear about your successes or if you have your own tips to share.  Take care.