Archive - August, 2012

Weird Financial Math

Weird financial math occurs in many households.

Here’s usually how it goes.

  • Person is scheduled to be paid next week.
  • Person thinks, “I’ll spend some of that money now on Item #1 on my credit card.”
  • Person spends money on Item #1 on their credit card.
  • They also spend money on Item #2, 3, and 4 using that credit card.
  • By the time the person actually receives their paycheck, it has already been totally spent.
  • Instead of repaying the credit card, they spend the actual cash from the paycheck on items #5, 6, 7, and 8.

Do you see what happens?

They are attempting to make ONE paycheck cover the costs of items that equal TWO paychecks.

It is weird financial math.

While 1 + 1 really does equal 2, they are attempting to make 1 + 1 equal 1.

I prefer to use the weird and wonderful math that happens when compound interest works for me!

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U.S. National Debt Update – August 2012

The US National Debt has increased by $46,233,894,979 since our last update on July 11, 2012.  Another month, and the United States has dropped another cool $46 billion in the hole.

National Debt as of 8/9/2012

$15,915,814,457,919

That is an increase of $1.594 BILLION PER DAY since our last update 29 days ago.

Whether we choose to address this problem as a nation or not, we WILL have to deal with it. We are really being faced with one of two decisions:

  1. Face the problem now by making some really tough choices  Like reducing some great programs or potentially eliminating some of them. NONE of us like to reduce spending. It is NO FUN. It STINKS. But we all have faced this in our personal finances before. Of course, we want to let our children participate in any activity they enjoy, but sometimes we have to say NO because of the costs! Of course, many people would love to have a huge house with every amenity known to mankind, but sometimes it is just not possible to maintain the financial burden required to maintain it!
  2. Let the problem fester until we are FORCED to make the tough choices  Whenever I have let the clock run out on tough financial decisions, I have found that my options have been severely reduced and the pain is much greater. I’ve always found myself saying, “I wish I had made this decision sooner.”

I wonder which decision the American citizens will make.

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5 Great Personal Finance Websites

It is a passion of mine to learn something new every single day. It is part of my daily routine to read more than 30 blogs and websites. Many of them are related to personal finances. With that said, I want to share “5 Great Personal Finance Websites” with you because they have helped me continue to learn about money.

  1. MyMoneyBlog.com Great posts ranging from the author’s personal financial story to investing articles. You can follow the author on Twitter HERE
  2. CNNMoney This is a great place to learn about what is happening in the world on subjects ranging from world markets to personal finance advice
  3. Christan Personal Finance Great biblical wisdom can be found daily on this website
  4. Yahoo! Finance Another collection of perspectives on “all things personal finance”
  5. Rich Dad Poor Dad A blog from the Robert Kiyosaki team that focuses on maximizing all of your resources

What great personal finance website would you add to this list?

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IHHE RANT: This Won’t Work For Everyone

For the next few days, I’m going to be sharing a few of my IHHE (I Have Had Enough) Rants.

IHHE Rant: This Won’t Work For Everyone

I love traveling this nation helping people become financially free and fund their dreams. It is my calling. It is AWESOME when I hear people say that they have become debt-free. It is even MORE AWESOME when someone tells me that they have been able to fire themselves from their J.O.B. and go do that “one thing” that they have been called to do. YES!

BUT …   there is that occasional person who says, “This will not work for me. Living by a budget is too hard.” Hmmmmm. Let’s think through this. The person is so stone broke that they can’t two nickels to rub together. … but living by a budget is too hard.

I think living BROKE is too hard! The STRESS. The EMERGENCIES. The TEARS.

It is just not worth it.

I’ll take my budget and its financial freedom.

Can I get a witness?!

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IHHE RANT: START TODAY!

For the next few days, I’m going to be sharing a few of my IHHE (I Have Had Enough) Rants.

IHHE Rant: Start Today!

I am praying and pleading that I have met the last person who will say to me, “If I get ____, then I will be able to go do what I really want to do with my life.”

Are you kidding me?   Life is too short to spend wishing and hoping.   If you KNOW that you are called to do something, then get started today!  You may not be able to do it full time right now, but you can at least do it part time and develop the skills necessary to take it to full time.

You want to start a business?   Start doing the work part-time right now!   You want to be a stay-at-home mom?   Make the financial decisions necessary to at least work one less hour per day or one day less per week.   You want to travel around the world? Start researching now on the Internet and save money to be prepared for the day that the dream WILL arrive!

STOP saying, “If I …”, and instead START saying, “I am …” or “I will…” or “When I…”!

You CAN do what you are called to do.   What can YOU do to get started toward it today?

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IHHE RANT: Don’t Do As I Do! Do As I Say!

For the next few days, I’m going to be sharing a few of my IHHE (I Have Had Enough) Rants.

IHHE Rant: Don’t Do As I Do! Do As I Say!

Everyone has met that one person who tells everyone how they should do something or how they should live their lives, but then that same individual goes out and ignores all of their own teaching!

It’s the PE Teacher who is completely out of shape.  It’s the messy parent telling their kid to clean their room.  It’s the person who tells their family to stop their crazy spending even when they themselves are so broke that when they go to Kentucky Fried Chicken, they have to lick other people’s fingers!

It’s the proverbial hypocrite.  Of course, we all have been a hypocrite at one point in time of our life or another, but I’m talking about consistently making the statement, “Don’t do as I do.  Do as I say!”

  • Americans You want the country to have a balanced budget?  You want the National Debt to stop rising?   IT STARTS BY LIVING IT IN YOUR OWN LIFE!
  • Parents You want your children to prosper in life and manage their money well?   IT STARTS BY LIVING THE PRINCIPLES IN YOUR OWN LIFE!
  • Business Owners You want your business to prosper?   You want your employees to manage the business money well?   IT STARTS BY DOING THE SAME IN YOUR OWN LIFE!

I know I have more than enough times in my life where I have not lived out everything I say I value, but man I am SO GRATEFUL that my bride and I got on the same page financially and took the necessary (and tough) steps to achieve financial freedom.

And here’s the GREAT NEWS – You CAN do it too!   That’s why I’ve written all of the books and studies.   It’s why I’ve written like crazy on this website for the past five years.   It’s why we travel and teach over 50,000 people each year.   However we can help you, we want to do it!

How about making this the time that you say, “Do as I do. Because doing so set me free!

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IHHE RANT: What Difference Does It Make Now?

For the next few days, I’m going to be sharing a few of my IHHE (I Have Had Enough) Rants.

IHHE Rant: What Difference Does It Make Now?

I routinely meet people who are so broke that they cannot see the forest because of the trees.

They can sit through an entire two-hour Financial Learning Experience where I teach the power of having a written plan for life and a written plan for their money. I have taught the enormous power of attacking debt with the Debt Freedom Date Calculation and using the debt snowball to eliminate it.

After all of this teaching, I still encounter people who say, “This can never work for me.   I’m beyond help.   What difference does it make now?”   Then they offer their reason (excuse) for why they can’t win with their money:

  • “I’m too old.”
  • “I’m too deep in debt.”
  • “I have no income.”
  • “I have too little income.”
  • “My spouse won’t participate.”
  • “I am stupid with money.”
  • “My parents didn’t teach me about money.”
  • “There’s no hope for me.”

Are you kidding me?   “What difference does it make now?”   Let me count some ways …

  • You’ll prove to yourself that you COULD do this!
  • You won’t have to eat Alpo during retirement!
  • You can help your children go to college and graduate debt-free!
  • You can use your past mistakes (and successes) to teach your children and grandchildren how to win with their money!
  • You won’t have to say, “Hi.   Welcome to Wal-Mart.” when you are 83 years young (unless you CHOOSE to)
  • You will develop a positive outlook on life – which leads to a longer, better, and more productive life
  • You will be able to leave an inheritance for your children and causes you really care about
  • You can position others to win with their money by leading the way!
  • Your ACTIONS will speak and teach way louder than any words you ever use.

What you do starting TODAY can make a major difference tomorrow!

QUESTION: What is ONE THING you can do today to make a difference tomorrow?

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Sangl Home Pay-Off Spectacular – August 2012

Every month there will be an update of Joe & Jenn’s Home Pay-Off Spectacular!

Here’s this month’s update!

Total Squares:  2,426

Paid-For Squares:  1191   1211

Squares Remaining:  1235   1215

% of House Owned By The Sangl’s:  49.1% 49.9%

% of House Owned By Wells Fargo:  50.9%  50.1%

Here is the updated Sangl Home Pay-Off Spectacular (click to view large size)

Another 20 squares! We did not quite make it to owning half of our house this month – we ended up just two squares short. Next month, we will finally own over half of the house, and that pumps us up!

It took us many years to get to the point that we could really tackle our mortgage, and it is so exciting to see all of that EFFORT and FOCUS and DETERMINATION literally “pay off” as we pay off our house!

YOU can do it too! I challenge you to start your own home pay-off spectacular using our free tool here => Pay Off Spectacular – House.

Read previous Sangl Home Pay-Off Spectacular Updates

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