Archive for May 2010

IHHE Rant: It Is NOT An Income Issue

Pardon me while I rant for a moment …

I encounter numerous people who believe that their financial situation is solely an income issue.   In nearly every case, they are wrong.

For example, Eddy Curry is an NBA basketball player who has reportedly made $57,267,294 in his career and is being paid $11,276,863 this season alone.   He is in financial trouble.   According to THIS ARTICLE from the NY Daily News, Eddy has defaulted on a $570,000 loan with 85% interest.   Read that again.   A huge loan for 85% interest.

Call me crazy, but this is not the result of an income issue.

While Eddy’s situation is an extreme case, I know many people who make ordinary amounts of money who genuinely believe that the answer to their financial struggles is more money.

Two cases in point:

Individual lost job and is in the financial ditch

  • They worked for 20 years and managed to save up exactly $0.
  • They earned $25,000/year for 20 years – that is $500,000, yet they managed to save exactly $0.
  • I wonder what their situation would have been if they had saved up $10,000 or $20,000 of that money over that 20 year period
  • If one saved $19.23/week for 20 years, they would have $20,000 – with no interest growth!
  • CONCLUSION: NOT an income issue.   Definitely a planning/saving issue.
  • SOLUTION:   Make SAVING a top priority!

Individual makes good money, but has no extra money.

  • Their non-house debt load is $600/month in payments (car, student loan, credit card, and furniture)
  • If they eliminated the debt, it would equal about $800/month in a gross income pay raise!
  • That is $9,600/year
  • CONCLUSION:   NOT an income issue.   Definitely a planning/spending issue.
  • SOLUTION:   Plan every dime earned.   Refuse to sign up for more debt starting immediately.

Here is how to win with what you have:

  • PLAN every dime
  • GIVE some
  • SAVE some
  • INVEST some
  • SPEND some

Thoughts?

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Remnants Upscale Thrift Store Accepting Donations – Anderson, SC

For those of you who regularly read this blog, you know that I don’t normally do this, but today is an exception.

I want to tell you about a new thrift store in downtown Anderson, SC (my hometown).   It is called Remnants and is located on Main Street just one block south of the courthouse.

Proceeds from the Thrift Store benefit Shalom House Ministries – a women’s addiction recovery center.   They are doing ASTOUNDING work that I believe in greatly.

They are accepting donations of the following items (and other similar type items):

  • Dress clothes
  • Shoes
  • Household goods
  • Furniture

Donations are accepted on Tuesdays and Thursdays from 11:00 AM until 3:00 PM.

Thanks for allowing me to take a post to talk about Shalom House.

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SERIES: Wisdom From Dr. John C. Maxwell – Part Two

Over the past year, I have had the incredible honor and privilege to speak at several conferences where Dr. John C. Maxwell has been the keynote speaker.   The conferences have been called Stewardship Challenge and they have been presented by Injoy Stewardship Solutions, a premier capital stewardship campaign company.

I thought I would take a few posts to write a few of the thoughts he shared that impacted me greatly.   I trust they will be helpful to you as well.

Part Two Connectors find common ground.

If you hope to accomplish something great, it is going to take lots of people to accomplish it.   If you are unable to find common ground where there is a win for everyone participating, you will limit the opportunity.

Don’t get me wrong, there are some things that simply are not negotiable.   For example, I Was Broke. Now I’m Not. will not promote payday loan providers offering loans at the low-low annual interest rate of 378%.   It is simply not an option.

As I work with our customers, our team, and our suppliers, I am constantly looking for better ways to maximize the win-win-win scenario for ALL parties involved – not just our team.   This is ESSENTIAL to our success.   We want our customers, team, and suppliers to all win.   To do so means that we must find common ground.

Guess what?   When you work to find common ground, it may seem like you are giving up something, but in the long run you gain way more than you feel that you have given up.

Read the series

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SERIES: Wisdom From Dr. John C. Maxwell – Part One

Over the past year, I have had the incredible honor and privilege to speak at several conferences where Dr. John C. Maxwell has been the keynote speaker.   The conferences have been called Stewardship Challenge and they have been presented by Injoy Stewardship Solutions, a premier capital stewardship campaign company.

You might be surprised that for me the highlight of the conference was not the opportunity to speak (on a subject I am VERY PASSIONATE about).   No – the highlight each time has been the opportunity to listen to, learn from, and observe Dr. Maxwell.   This is a man who is living his calling.   He has mentored and taught me via books since my early twenties.   People have bought over 18,000,000 copies of his leadership books (a few more than my books).

I thought I would take a few posts to write a few of the thoughts he shared that impacted me greatly.   I trust they will be helpful to you as well.

Part One Nothing in the world gives more HOPE to mankind than a dream and nothing has brought more DISAPPOINTMENT than not fulfilling a dream.

An amazing statement.   We all have dreams – all of us – yet so many people fail to achieve their dreams.   This is what drives our team to teach foundational financial principles – so many of life’s dreams take money.

You want to fund your dream?   Here are two fundamental steps you can take today toward fulfilling it:

  1. Write down your plans, hopes and dreams on paper (you can use this form if you like – [download#7#nohits])
  2. Prepare a written spending plan that includes the money to begin funding the dream (use one of the free budgeting tools HERE)

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