Archive for December 2009

CONGRATULATIONS to GroceryFreak.com!

I am PUMPED to say that IWBNIN team member “The Saving Freak” was mentioned on The Clark Howard Show yesterday!   More specifically, The Saving Freak’s website – GroceryFreak.com was mentioned.

Congrats Saving Freak – you have saved me and a lot of other people a ton of money on groceries, and you deserve the KUDOS!

If you have a moment, will you go over to GroceryFreak.com (HERE) and congratulate The Saving Freak ?   You might even subscribe to receive each posts FREE in your e-mail (HERE).

New Book – Chapter on Credit Scores – Part Five

I am EXCITED and PUMPED about my new book for high school students, college students, and twenty-somethings – What Everyone Should Know About Money Before They Enter THE REAL WORLD.

To celebrate the release of this book, I am sharing one of the chapters of this book (see all of the chapter titles HERE)

Here is another section of the “Credit Scores” chapter:

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Everyone Should Know …

A credit score is a debt management score, not a measure of your financial health.

Review the items that comprise a FICO score. Did you notice that it does not include items such as:

  • The amount of money in a savings/checking or retirement account?
  • The amount of equity in a home?
  • Paid-for items that have value (car, house, expensive jewelry, etc.)

A FICO credit score only looks at debt. One could literally have $1 million in the bank and have a credit score of ZERO because they have not used debt for a long period of time.

There are people who define themselves by their credit score. My credit score is 801, they boast. I have seen many people who have extremely high credit scores who are absolutely broke. They have a high credit score because they have managed their debt well, not because they have managed their money well!

There are many people who have purchased a brand new car using debt when they could have paid cash for a nice used car. They bought the new car solely to boost their credit score. It might improve their credit score, but it hurts them where it really counts – the bank account!

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Read the entire series HERE

Learn more about the book and RESERVE YOUR COPY (ships 12/15!) at its dedicated website HERE

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Six Sigma: Statistically Significant Result

You may not know this, but I am a certified, bonafide Six Sigma Black Belt and Lean Expert.   You may have no idea what this means, but it has served me well as an engineer and business manager.   These skill sets help one focus on removing non-value added activity, eliminating unnecessary costs, and determine the truly significant variables that drive product or service improvement and ultimately, profitability.

Even though I left Corporate America a three years ago, I have certainly never stopped using the skill sets I learned!   They are tremendously helpful in running I Was Broke. Now I’m Not.

As I was walking into my daughter’s school the other day to sit with her during lunch (it was square pizza day!), I saw a bar graph that showed the results of the 4th-graders voting for their “Favorite Fast Food Restaurant”.

ChickFilAWins

It reminded me of the power of transforming “data” into “useful information”.   This chart shows a significant result – Chick Fil A smoked their peers.   I asked the kids at lunch why they like Chick Fil A so much.   The answers?   Without exception it was because they loved the food.   Not the toys.   Not the packaging.   Not the cows.   It was the food.

I bet that a simple study similar to this one would allow people to understand the largest financial issue that they need to address as well.   It is time to bring Six Sigma and Lean to the world of personal financial management!

Regarding the kid’s study of favorite fast food restaurant, I would have to perform a 2-sample double-blind t-test to be certain that this is a statistically-significant result. 🙂

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New Book – Chapter on Credit Scores – Part Four

I am EXCITED and PUMPED about my new book for high school students, college students, and twenty-somethings – What Everyone Should Know About Money Before They Enter THE REAL WORLD.

To celebrate the release of this book, I am sharing one of the chapters of this book (see all of the chapter titles HERE)

Here is another section of the “Credit Scores” chapter:

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Everyone Should Know …

What number is a good credit score?

According to Fair Isaac, a credit score can range from 300 to 850. The higher the score, the lower the risk. This means you want a higher number.

Companies establish their own criteria as to which credit score is a good credit score. As a general rule, any FICO score greater than 750 is an excellent credit score. Anything more than 800 is considered outstanding. As credit scores drift into the 600 range, credit might still be available, but it will come at a higher cost. Credit scores in the 500 range might prevent you from obtaining reasonable lending rates and terms.

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More from this chapter tomorrow!

Read the entire series HERE

Learn more about the book and RESERVE YOUR COPY (ships 12/15!) at its dedicated website HERE

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Congratulations Bank Of America!

Bank of America has repaid its TARP (Troubled Asset Relief Program = BAILOUT) funds back in full to the Federal Government (taxpayers).   A total of $45 billion has been repaid.

As a shareholder of Bank of America stock, I am pleased to see this.

As a tax-paying citizen of the USA, I am ecstatic to see this.

You can read CNNMoney’s take on it HERE and Bank of America posted it on their investor relations board HERE.

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